By: Staff Writer
December 31, Colombo (LNW): Sri Lanka’s economy is showing promising signs of recovery, with key economic indicators reflecting positive momentum. As the economy stabilizes and moves in the right direction, several metrics highlight this progress.
By the end of November 2024, Sri Lanka’s Official Reserve Assets rose to USD 6,462 million, according to the Central Bank.
Additionally, inflation, measured by the National Consumer Price Index (NCPI), remained in negative territory for the third consecutive month, recording a deflation of 1.7% in November 2024, compared to 0.7% in October.
Food prices showed no year-on-year changes, while the Non-Food category experienced a deflation of 3.1%. Central Bank Governor Dr. Nandalal Weerasinghe expects inflation to stabilize at 4-5% by mid-2025.
In the stock market, the All Share Price Index (ASPI) set a record, rising by 4.89% to 15,535.60 points as of December 27, 2024.
The S&P SL 20 Index also increased by 5.56% to 4,666.65 points. Fiscal management showed improvement, with the overall budget deficit from January to October 2024 decreasing to Rs. 1,060.7 billion from Rs. 1,547 billion during the same period in 2023.
Furthermore, the Sri Lankan rupee appreciated against the US dollar by 10.1% in 2024.Worker remittances recorded significant growth, reaching USD 5,399.8 million by November, a 10.1% increase year-on-year.
Monthly remittance revenue averaged USD 530.1 million, with total earnings for 2024 expected to surpass USD 6 billion. Total exports for November 2024 amounted to USD 1,269.33 million, marking a marginal 0.04% increase from November 2023.
Services exports rose by 20.89% to USD 326.23 million, offsetting a 5.6% decline in merchandise exports, which totaled USD 943.1 million.
Tourism has been a key driver of economic growth, with arrivals surpassing 2 million and revenues reaching USD 2.8 billion by November 2024.
Monthly earnings of over USD 270 million are expected to push annual tourism revenue beyond USD 3 billion, a 56% increase compared to USD 1.8 billion in January–November 2023. Daily tourist arrivals averaged over 10,000, with total arrivals projected to exceed 2.1 million for the year.
These indicators reflect a robust recovery trajectory for Sri Lanka’s economy, driven by improved fiscal management, increased remittances, and a resurgent tourism sector. The positive trends highlight growing confidence in the country’s economic stability and potential for sustained growth.
