Sri Lanka’s economy outpaces growth projections says World Bank
Daily FT: The World Bank has acknowledged Sri Lanka’s economy has made a remarkable recovery in 2024, surpassing growth expectations by recording 5% growth, compared to the projected 4.4%, but stressed more efforts are needed to reduce poverty and spur medium-term growth.
Releasing the World Bank’s bi-annual Sri Lanka Development Update, titled ‘Staying on Track,’ it said growth has been driven by strong performances in industry and services, particularly in construction and tourism-related services. In 2025, growth is expected to moderate to 3.5%, reflecting scarring effects of the crisis and structural impediments to growth amid global headwinds and unprecedented trade policy uncertainty.
“While Sri Lanka’s economy is bouncing back stronger than expected, a significant portion of the population — about a third — remains in poverty or is at risk of falling back into poverty,” said World Bank Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “To ensure this recovery works for everyone, especially those who have been hit hardest, Sri Lanka can focus on policies that create jobs and support the poor.”
OSL take:
The latest statement by the World Bank indicates the resilience, strength and growth of Sri Lanka’s overall economy. The country’s quick turnaround from an unprecedented economic crisis faced in 2022 continues to surprise multilateral financial institutions as well as foreign businesses/investors, who are now exploring the expanding business/investment opportunities in all key economic sectors. Supported by Sri Lanka’s geographical positioning in the Indian Ocean, strong trade ties and the target of becoming a regional hub have also added to the country’s attraction as an emerging business destination in the region. All these have resulted in the expansion of business/investment opportunities in all key economic sectors including in the development of infrastructure and supplementary infrastructure facilities required to meet the growing demand indicative of the many emerging opportunities in Sri Lanka. The increasing growth and business potential in Sri Lanka in-turn present lucrative business/investment opportunities for foreign businesses/investors. Foreign businesses/investors could also look at expanding operations in Sri Lanka by forming partnerships to joint ventures with local businesses.
| Article Code : | VBS/AT/20250429/Z_3 |