Can Sri Lanka record a current account surplus for 2021?

Can Sri Lanka record a current account surplus for 2021?

Can Sri Lanka record a current account surplus for 2021?

Written by Staff Writer

18 Feb, 2021 | 9:15 pm

COLOMBO (News1st): Sri Lanka is expected to record a current account surplus for 2021, the central bank has said.

“…if we can continue with the current import compression this year and beyond, there will be a current account surplus,” Central Bank Director Economic Research Dr Chandranath Amarasekara said.

He pointed out that a rebound in tourist arrivals and an increase in workers remittances would also result in a surplus in the current account.

But opposition parliamentarian Eran Wickremeratne said it is difficult for Sri Lanka to achieve a current account surplus this year.

“This idea that there will be a current account surplus is not sustainable,” the Samagi Jana Balawegaya parliamentarian said Thursday.

He pointed out that a surplus is not possible as Sri Lanka would have to spend money on at least certain imports with fuel prices on the rise.

“In 2020, a barrel of oil averaged about 35 dollars. Next year it will average between 64 to 65 dollars,” Wickremaratne noted.

He dismissed the possibility of a current account surplus even in the event of a partial economic growth.

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