Sri Lanka economy is expected to expand between 5.5 percent and 6.0 percent in 2017, Central Bank Governor Indrajith Coomaraswamy said on Tuesday, Reuters reporters.

This rate is higher than last year's estimated pace of at least 4.5 percent growth.

However, there could be some downside risks facing growth this year, Coomaraswamy told a gathering in Colombo while announcing economic and financial policies for 2017.

Growth in 2016 was lower than the originally projected minimum of 5 percent, and below 2015's rate of 4.8 percent.