Sri Lanka’s GDP growth to dip to 2.4 % – ADB

ADB said it projected Sri Lanka’s economic growth to dip to 2.4% in 2022 and improve marginally to 2.5% in 2023.

The Asian Development Bank’s (ADB) annual flagship economic publication has forecast a muted recovery from the coronavirus disease (COVID19) pandemic as Sri Lanka’s economy grapples with macroeconomic challenges arising from high debt, low foreign reserves, and inflationary pressures.

That being said, the maturation of nearly USD 7 billion worth of debt this year, an unsustainable fuel import bill, and heightened inflationary pressures pose downside risks to the outlook.

Economic experts projected the economy to grow 3.1% in 2022, which is down 0.3 percentage points from last month’s forecast. In 2023, our panel sees the economy growing 4.1%.

GDP Annual Growth Rate in Sri Lanka is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts.

However the country’s tourism industry foreign remittances will be declined to considerable level due to the present political instability in the country coupled with the government’s failure to mange macro economic fundamentals as result of patch work economic policies.


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