Sri Lanka’s Economy Records 5% Growth in 2024, Marking Strong Recovery

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Sri Lanka’s economy recorded an impressive turnaround, achieving 5% growth in 2024, supported by renewed macroeconomic stability, according to the Central Bank of Sri Lanka (CBSL).

The Census and Statistics Department reported that the country’s economy grew by 5.4% in the fourth quarter of 2024, surpassing earlier projections.

The International Monetary Fund (IMF) had previously forecast 4.5% growth for Sri Lanka in 2024, but the actual figures exceeded expectations.

Key sectoral growth figures include:

  • Agriculture: Expanded by 8.3% compared to the previous year.
  • Industry: Recorded a substantial growth of 25.5%.
  • Services: Showed an impressive increase of 57.5%.

Sri Lanka’s economy had plunged into crisis in 2022, contracting 7.3% due to a severe foreign exchange shortagesoaring inflationcurrency depreciation, and a historic foreign debt default. The downturn continued into 2023, with a 2.3% contraction.

However, a stronger-than-expected recovery took place in 2024, largely attributed to the $2.9 billion four-year bailoutprogram secured from the IMF in March 2023, which introduced economic reforms and financial stabilization measures.

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