Sri Lanka records slowest growth in 16 years

Colombo: Sri Lanka´s economy grew at its slowest pace in 16 years to expand at a worse-than-expected 3.1 percent last year, the central bank announced Thursday.

The bank had expected the economy to grow at 5.0 percent in 2017, but a drought and floods dragged down growth.

At least 213 people were killed in the May 2017 rains that triggered over a dozen landslides and flooded 15 of the island´s 25 districts.

"Adverse weather conditions and their spillover effects continued to affect economic activity and the economy surprised to the downside by recording a growth of 3.1 percent," the Central Bank of Sri Lanka said.

Governor Indrajith Coomaraswamy said he hoped GDP growth would reach about 5.0 percent this year, a slightly higher forecast than the island´s international creditors.

Coomaraswamy said Sri Lanka attracted a record $1.37 billion in foreign direct investment last year and foreign reserves hit nearly $10 billion.