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 shortage, soaring inflation, currency 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.
