Sri Lanka Shows Signs of Recovery but Must Maintain Reform Momentum, says ADB

COLOMBO (News 1st) - The Asian Development Bank’s (ADB) annual flagship economic publication, the Asian Development Outlook (ADO) April 2024, forecasts Sri Lanka’s economy to record moderate growth of 1.9% in 2024 and 2.5% in 2025 following 2 consecutive years of contractions.

Sri Lanka is showing signs of recovery, with green shoots emerging in the second half of 2023.

Inflation has decelerated to single digits, foreign exchange reserves continue to be built up, and the exchange rate has appreciated. Tourist arrivals and remittance inflows continue to show a commendable recovery while supply conditions have improved.

ADB’s growth forecast hinges on the continuation of reforms and better consumer and business sentiment.

Timely completion of external debt restructuring will also support Sri Lanka’s debt sustainability efforts.