Economy shows strong recovery amidst reforms and global challenges
The Sri Lankan economy has shown significant signs of recovery in the first half of 2024, with notable improvements in real Gross Domestic Product (GDP) growth, tax revenue, inflation, and foreign currency reserves.
The economy expanded by 5 per cent, while tax revenue rose by 41.4 per cent to Rs. 2,348.5 billion in the first eight months of 2024 compared to the same period in 2023, the Finance Ministry’s pre-election budgetary position report revealed.
Inflation fell to a deflation of 0.5 per cent in September 2024, and Gross Official Reserves increased to US$6 billion, including a swap arrangement with the People’s Bank of China (PBOC) as of the end of August 2024.
The Sri Lankan rupee strengthened, appreciating by 8.2 per cent by the end of September 2024.
Economic reforms under the International Monetary Fund’s Extended Fund Facility (IMF-EFF) have played a key role in supporting the country’s economic recovery and improving living conditions, the report highlighted.
Efforts to maintain macroeconomic stability and restore debt sustainability remain crucial for achieving fiscal goals, with a medium-term primary balance target of 2.3 per cent of GDP set for the end of 2025.
Despite these positive developments, risks from recent tensions in West Asia may impact Sri Lanka’s economic outlook, potentially leading to higher petroleum prices, increased inflation, and rising interest rates.
The fiscal sector has made notable progress, achieving a primary balance of 3.7 per cent of GDP and revenue and grants amounting to 12.7 per cent of GDP in the first half of 2024.
The government has also met the Quantitative Performance Criteria (QPC) for tax revenue and primary balance in the first two quarters of 2024.
Government revenue, including grants, rose by 40.5 per cent to Rs. 2,565.9 billion in the first eight months of 2024, while expenditure increased by 5.4 per cent to Rs. 3,476.9 billion during the same period.
As a result, the budget deficit narrowed to Rs. 911.0 billion, down from Rs. 1,470.7 billion in the corresponding period of 2023.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!