The report indicates that the Sri Lankan economy rebounded, recording 7.3 per cent growth in 2013, while inflation remained at single digit levels for the fifth consecutive year, gradually declining to mid-single digit levels by end 2013. With the steady rise in economic growth during the year, GDP per capita income rose to US dollars 3,280 in 2013. Low inflation enabled the Central Bank to ease monetary policy further during the year to facilitate economic growth. The improvement in the trade account and higher receipts from workers' remittances and trade in services, together with increased inflows to the financial account as a result of improved investor confidence resulted in a significant improvement in the balance of payments (BOP) enabling a buildup of foreign reserves and supporting exchange rate stability.Inflation remained at single digit levels for the fifth consecutive year. The unemployment rate remained low during 2013 at 4.4 per cent, albeit increasing marginally from 4 per cent in the previous year largely due to the entry of new job seekers to the labour market. Fiscal policy continued to focus on promoting sustainable and regionally balanced growth in the medium term, while the government remained committed to fiscal consolidation efforts leading to a gradual improvement in key fiscal indicators. Looking ahead, the Sri Lankan economy is expected to maintain a high growth momentum in the medium term supported by an increase in investment, a favourable macroeconomic environment and continued recovery in the global economy. Sri Lanka's economic progress in the medium term is not without challenges, and structural adjustments are necessary for sustaining the growth momentum over the medium term and beyond. The financial sector is expected to strengthen further with the adoption of international best practices and the planned consolidation programme.