Sri Lanka's Economy Stabilizes Post-Reforms, Says CBSL

COLOMBO (News 1st); According to the 2024 Annual Economic Review by the Central Bank of Sri Lanka, post-crisis reforms have started showing positive outcomes.

The report highlights that signs of improved economic activity, partial recovery in purchasing power, and reduced uncertainty are visible.

The Central Bank of Sri Lanka reports that the economy is stabilizing, based on key economic indicators.

Economic growth, which was -7.3% in 2022, has rebounded to 5% by the end of 2024. Inflation, which was 46.4% in 2022, has decreased to -1.7% by the end of 2024.

The financial sector has also shown stability, with bank interest rates dropping from 29.7% during the 2022 economic crisis to 8.9% by the end of the previous year.

The value of the US dollar, which was Rs. 365 during the economic crisis, has fallen to Rs. 296 by the end of the last year.

Foreign reserves, which had dropped to 1.7% in 2022, have significantly increased to 6.1% by the end of 2024.

Additionally, the country's public debt, which was 114.2% of GDP during the economic crisis, has decreased to 96.1% by the end of the previous year. Public revenue, which had fallen to 8.3% of GDP, has risen to 13.7%.

Consequently, the budget deficit has been reduced from -11.7% to -6.8%, according to the Central Bank report.