Sri Lanka, Jan. 29 -- Sri Lanka's economy is expected to grow by 4 to 5% this year, according to Central Bank Governor Dr Nandalal Weerasinghe, who has declined to endorse the World Bank's more modest forecast of 3.5%.

Speaking at the media briefing on the year's first Monetary Policy Review held yesterday (28), Dr Weerasinghe said he was confident of stronger economic performance, while announcing that the Overnight Policy Rate will be maintained at the existing 7.75 per cent.

He also noted that inflation is expected to reach the target level of 5% towards the end of the second quarter of this year.

Against the backdrop of Cyclone Ditwah and with an IMF team currently in Sri Lanka on a fact-finding mission, a question was raised regar...