Rising budget deficit and a drop in economic growth are the trade-offs of the current account surplus in the balance of payments (BOP), a leading economist stated.
Principal Researcher at the Point Pedro Institute of Development Muttukrishna Sarvananthan told the Business Times this week that the announcement by the Central Bank (CB) that Sri Lanka will have a current account surplus in 2009 for the first time since 1977, conspicuously hides the cost or trade-offs of such a surplus in the current account. |