Sri Lankan economy projected to grow 2.2 pct in 2024

COLOMBO, April 2 (Xinhua) -- Sri Lanka's economy is projected to see moderate growth of 2.2 percent in 2024, showing signs of stabilization, following the severe economic downturn in 2022, the World Bank in its attest bi-annual update said on Tuesday.

According to the update, the country still faces elevated poverty levels, income inequality, and labor market concerns.

The update highlighted that Sri Lanka saw declining inflation, higher revenues on the back of the implementation of new fiscal policies, and a current account surplus for the first time in nearly five decades.

However, poverty rates continued to rise for the fourth year in a row, with an estimated 25.9 percent of Sri Lankans living below the poverty line in 2023. Labor force participation has also seen a decline, particularly among women and in urban areas, exacerbated by the closure of micro, small, and medium-sized enterprises.

"Sri Lanka's economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms," said Faris Hadad-Zervos, World Bank country director for Maldives, Nepal and Sri Lanka.