Sri Lanka’s economy stabilized with expected growth of 4.4 percent this year: WB

Sri Lanka’s economy has stabilized, with growth expected to reach 4.4% in 2024, surpassing earlier forecasts, the World Bank said today in its latest country update report on Sri Lanka. This positive outlook follows four consecutive quarters of growth driven by the industrial and tourism sectors and supported by critical structural and policy reforms.

World Bank Sri Lanka’s latest Development Update dives into an in-depth analysis of Sri Lanka’s key economic indicators, with a special focus on essential reforms in trade policy, facilitation, and investment to boost Sri Lanka’s export potential. 

While recent economic performance has been sound, macroeconomic stability remains fragile and is predicated on the consistent implementation of key fiscal, financial, and monetary policies, the report noted.

"Given limited fiscal and external buffers, however, downside risks remain high. These include a protracted or insufficiently deep debt restructuring, policy uncertainty (including direction and pace of policy reform and the potential fiscal impact of electoral promises), and medium-term scarring effects of the crisis," the report further added.