[ad_1]
ECONOMIYNEXT – Sri Lanka’s economy is expected to record a growth in 2024 for the first time in three years after contractions in the previous two years, State Finance Minister Shehan Semasinghe said.
The economy recovered last year, but still estimated to have recorded a contraction of around 3 percent from a 7.8 percent contraction in 2022.
However, the economy has shown signs of expansion from the third quarter of last year due to gradual rise in economic activities under a lower interest rate and single digit inflationary regime.
“We expect an economic growth of 2 percent or more this year,” Semasinghe told reporters in Colombo on Monday (01) at a media briefing.
“There is a positive sign on the economic growth from the 2023 third quarter and the fourth quarter is also estimated to have ended in a positive growth.”
“The economy in the entire 2023 is estimated to have contracted by 3 percent or less than that.”
The island nation saw its worst economic collapse in 2022 after it declared bankruptcy and sovereign debt default.
Since then, the government entered into a $3 billion deal with the International Monetary Fund (IMF), implemented tight monetary and fiscal policies to boost the state revenue and reduce inflation.
“It is a positive message to the country’s future in the backdrop of a collapsed economy,” the minister said, referring to the economic expansion in the second half of 2022. (Colombo/Jan 1/2024)
[ad_2]
Source link
