INSUBCONTINENT EXCLUSIVE:
assuming successful debt restructuring negotiations and the implementation of structural reforms, which would offset the adverse impact of
planned fiscal consolidation on growth.In its latest Global Economic Prospects report, the World Bank says that in the South Asian Region
(SAR), economic spillovers from outside the region tend to be limited, because the region is generally less open to international trade than
However, weaker-than projected growth in major trading partners could damage growth in several countries, particularly Bangladesh, Pakistan,
softerthan-projected activity in China could cause a decline in receipt of intermediate goods, which would result in shortages in input
materials and dampen activity
In addition, countries in Europe are the main export destination for these countries, and weaker-than expected demand in Europe,
activity in the United States
Another upside risk is greater progress in lowering global inflation, which could lead to faster-than-expected easing of monetary policy,
the growth in South Asian Region is estimated to have increased to 6.6 percent in 2023, largely driven by faster growth in India
Lanka, it remained weak, it added.In Sri Lanka, after contracting in 2023, activity has strengthened and tourism and remittances have also
recovered, though they have remained below pre-pandemic levels, as per the World Bank report.Moreover, the World Bank indicates that foreign
exchange reserves have increased in several countries, including Pakistan and Sri Lanka, reflecting the easing of currency pressures and
limited, because the region is generally less open to international trade than other parts of the world
However, weaker-thanprojected growth in major trading partners could damage growth in several countries, particularly Bangladesh, Pakistan,
States, the World Bank said, adding that this could stimulate faster growth, especially in countries that are large exporters to the United
