Sri Lanka lowers 2012 growth target to 6.5 pct y/y

Last Updated: Thu, Dec 20, 2012 18:42 hrs

COLOMBO, Dec 19 (Reuters) - Sri Lanka's central bank has revised the island nation's 2012 economic growth target to 6.5 percent on Wednesday from an earlier 6.8 percent due to its tight monetary and fiscal policies, the deputy head of the monetary authority said.

"There will be slower than expected growth in the third quarter, which would be close to 5 percent or may be less than that," Nandalal Weerasinghe, deputy central bank governor, told Reuters in an interview.

"As a result, for the whole year, we have revised down the growth to 6.5 percent from the earlier 6.8 percent."

Sri Lanka has already revised down the growth target twice in 2012 from the original 8 percent after achieving a record 8.3 percent economic expansion last year. (Reporting by Shihar Aneez; Editing by Jacqueline Wong)

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