Colombo: The Asian Development Bank has projected Sri Lanka's economy to register moderate growth of 1.9 percent in 2024 and 2.5 percent in 2025 after two consecutive years of contraction.
The Asian Development Bank (ADB) growth forecast depends on the continuation of reforms and improved consumer and business sentiment as well as the timely completion of external debt restructuring which will also support Sri Lanka's debt sustainability efforts.
“Sri Lanka is showing signs of recovery, with green shoots emerging in the second half of 2023,” the Manila-based debt agency said in its Asia Development Outlook (ADO) for April 2024.
It said Sri Lanka would return to single-digit inflation at 7.5 percent in 2024 and 5. percent in 2025 after two years of high inflation.
“Inflation has declined to single digits, foreign exchange reserves continue to build, and the exchange rate has appreciated.Tourist arrivals and remittance flows continue to improve appreciably, while the supply situation has improved, NewsFirst.lk portal quoted the ADO as saying.
The positive sign came when in March, the International Monetary Fund (IMF) said it had reached a staff-level agreement with Sri Lanka for the next phase, bringing it to USD 337 million from the nearly USD billion bailout approved. Will enable. For the island nation in 2023.
Two tranches of US$330 million were released in March and December 2020, while the global lender praised Colombo for macroeconomic policy reforms, saying "the fruits have begun to bear fruit."
“Sri Lanka's central bank cut rates four times for a total of 650 basis points, but this was offset by a decline in inflation, which fell sharply from 53. per cent in January 2023 to 4.2 per cent in December.As a result, Sri Lanka’s real interest rate is now about 14 percentage points higher than last year,” I said.
Stating that in the island nation, growth will accelerate from a 2.3 percent contraction in 2023 to 1.9 percent in 2020 and 2.5 percent in 2025, Edi said, “It will be driven by increased output in services, resumption of industrial projects.” , and continuous improvement aims to improve the business environment.
“Nonetheless, the tax increase will dampen the recovery in private consumption and investment,” it says."
The Asian Development Bank (ADB) growth forecast depends on the continuation of reforms and improved consumer and business sentiment as well as the timely completion of external debt restructuring which will also support Sri Lanka's debt sustainability efforts.
“Sri Lanka is showing signs of recovery, with green shoots emerging in the second half of 2023,” the Manila-based debt agency said in its Asia Development Outlook (ADO) for April 2024.
It said Sri Lanka would return to single-digit inflation at 7.5 percent in 2024 and 5. percent in 2025 after two years of high inflation.
“Inflation has declined to single digits, foreign exchange reserves continue to build, and the exchange rate has appreciated.Tourist arrivals and remittance flows continue to improve appreciably, while the supply situation has improved, NewsFirst.lk portal quoted the ADO as saying.
The positive sign came when in March, the International Monetary Fund (IMF) said it had reached a staff-level agreement with Sri Lanka for the next phase, bringing it to USD 337 million from the nearly USD billion bailout approved. Will enable. For the island nation in 2023.
Two tranches of US$330 million were released in March and December 2020, while the global lender praised Colombo for macroeconomic policy reforms, saying "the fruits have begun to bear fruit."
“Sri Lanka's central bank cut rates four times for a total of 650 basis points, but this was offset by a decline in inflation, which fell sharply from 53. per cent in January 2023 to 4.2 per cent in December.As a result, Sri Lanka’s real interest rate is now about 14 percentage points higher than last year,” I said.
Stating that in the island nation, growth will accelerate from a 2.3 percent contraction in 2023 to 1.9 percent in 2020 and 2.5 percent in 2025, Edi said, “It will be driven by increased output in services, resumption of industrial projects.” , and continuous improvement aims to improve the business environment.
“Nonetheless, the tax increase will dampen the recovery in private consumption and investment,” it says."
