In a promising update, the World Bank has announced that Sri Lanka’s economy has stabilized, with growth projections expected to reach 4.4% in 2024, surpassing earlier forecasts. This optimistic outlook is highlighted in the World Bank’s Semi-Annual Sri Lanka Development Update, titled “Opening Up to the Future,” released today.
The World Bank attributes this positive trajectory to essential structural and policy reforms, as well as consistent growth in the economy over the past four quarters, particularly driven by the industrial and tourism sectors. David Sislan, the World Bank Regional Director for Maldives, Nepal, and Sri Lanka, emphasized that “Sri Lanka’s recent economic stabilization, marked by four quarters of economic growth and a current account surplus in 2023, is a significant milestone.”
However, the World Bank also cautions that the country’s macroeconomic stability remains vulnerable. To maintain this progress, successful debt restructuring and continued structural reforms are critical for fostering medium-term economic growth and reducing poverty.
The report reflects a cautiously optimistic sentiment about Sri Lanka’s economic future, acknowledging both the strides made and the challenges that lie ahead.
