ADB Projects 3.9% Growth in 2025 For Sri Lanka

COLOMBO (News 1st); The Asian Development Bank (ADB) has projected moderate growth for Sri Lanka over the next two years, according to its April 2025 Outlook report. 

GDP growth is expected to slow to 3.9% in 2025 and further to 3.4% in 2026, following an exceptionally strong recovery in 2024.

The report highlights that eased monetary conditions and the planned resumption of infrastructure investments will spur growth across all sectors. 

It added that despite lower interest rates and higher public wages, domestic demand will remain sluggish,
constrained by still weak purchasing power

Inflation will pick up as demand strengthens but will remain below the central bank target.

The report also noted that the government remains committed to pursuing fiscal consolidation, though stronger revenue
creates some room for higher expenditure.

The current account will fall into deficit in 2025 and 2026 as imports accelerate and interest payments resume on external debt, said the ADB report.