Growth momentum continuing - CB

THE Central Bank last week in its Monetary Policy Review - May 2005 said that the growth momentum in the economy is continuing with the recovery in the sectors affected by the tsunami including tourism and fisheries.

According to the CB, tourist arrivals have increased by 38 per cent in April 2005 compared to the corresponding period last year, indicating a faster recovery in tourism and related services.

"Paddy production has shown a significant improvement during the Maha season 2004/05, while tea production also increased during the first three months of the year.

The performance of the agriculture sector is likely to improve further largely supported by favourable weather conditions. The industrial sector has benefited from the improved performance in apparel, processed food, cement, building materials, rubber based products and basic metal products. The increase in construction activity and hydropower generation also contributed to the industrial sector growth.

The services sector continues to expand with healthy growth in telecommunications, port and transport services. External trade expanded with export earnings increasing at a higher rate than the increase in expenditure on imports.

The improved performance of textile and garments and rubber based products contributed to the increase in export earnings during the first three months of the year. Expenditure on imports of consumer goods and intermediate goods increased, while expenditure on investment goods declined," the Central Bank said.