• Sri Lanka is expected to achieve close to 4% economic growth by the end of 2024, despite earlier years of economic contraction and lower growth forecasts from international organizations.

Sri Lanka will continue its positive economic growth momentum for the rest of 2024, achieving close to 4% growth by the end of the year, according to Central Bank Governor Dr. Nandalal Weerasinghe. Speaking at an event by CMA Sri Lanka held last week, Weerasinghe mentioned that all leading indicators point towards positive growth, and the country hopes for close to 4% year-on-year growth after a couple of years of economic contraction. Earlier this month, Finance State Minister Shehan Semasinghe also expressed expectations of 3-3.5% economic growth in 2024, despite lower forecasts from the International Monetary Fund (IMF) and the World Bank, which predict growth rates of 2% and 2.2% respectively.

Moreover, Weerasinghe highlighted that the acceleration of inflation is between 1-2%, despite the Central Bank of Sri Lanka's (CBSL) target range of 5%. He noted that inflation is significantly underperforming, presenting a challenge for CBSL as they aim to maintain single-digit inflation within a specific range. "We are breaching the lower band of inflation for a longer period, and we have to report to the parliament and consult with the IMF on our commitment to maintain inflation within a band," he said.

CBSL expects economy to grow close to 4% in 2024 | The Morning