Growth in Sri Lanka unsustainable due to structural barriers to competitive markets says World Bank 18 April 2015A report by the World Bank on South East Asia, noting structural barriers to competitiveness in Sri Lanka, predicted a decline in Sri Lanka's growth to 6.9 percent due to several factors including slowing down in the construction industry.  The report added that part of the decline in growth would  be due to previous growth being artificially propped up by consumption due to increased public sector wages.  With competitiveness still remaining a challenge in Sri Lanka, due to the actions of the previous government, the growth of Sri Lanka will decline as the new government looks to make changes to move towards a more open and competitive market, the South East Asia Economic Focus report also added. Noting that Sri Lanka's current growth had come from non-tradable sectors, the World Bank warned that it would be difficult to sustain future growth without increasing growth in export sectors, which lacked competiveness in Sri Lanka.

South Asia Economic Focus Spring 2015.pdf by Thavam Ratna