Sri Lanka's Economic Journey: From Crisis to Cautious Recovery

The Sri Lankan economy is slowly stabilizing following a severe crisis in 2022, with expected growth of 4.4% in 2024. Structural reforms and IMF negotiations play a crucial role, while poverty remains a challenge. The World Bank underscores the need for macroeconomic stability and debt restructuring.

The Sri Lankan economy is showing signs of recovery after the severe crisis it faced in 2022, with growth forecasted to reach 4.4% in 2024, up from earlier projections, according to the World Bank's recent report.

While the World Bank's country director, Gevorg Sargsyan, commended the unexpected growth surge, he cautioned that the nation is still not entirely clear of economic hardships. The IMF's conditions for the $2.9 billion bailout package, which include external debt restructuring, remain pivotal in this recovery phase.

President Anura Kumara Dissanayake is adhering to the IMF's bailout program despite its tough conditions, aiming to boost the country’s untapped export potential, which could generate $10 billion annually and create numerous jobs. However, poverty rates are expected to decline slowly, remaining above 20% until 2026.

(With inputs from agencies.)