Sri Lanka’s economy grew by 5.0 percent in 2024, marking its first annual growth since the crisis in 2022. This follows a significant GDP contraction in previous years. Economic reforms and support from the IMF have contributed to this recovery, with further growth expected in 2025.
Sri Lanka’s economy has recorded a significant development, achieving a remarkable 5.0 percent growth in 2024. This marks the first annual economic expansion following the unprecedented crisis in 2022, as reported by official statistics released on Tuesday. The final quarter of 2024 notably saw a GDP increase of 5.4 percent, contrasting with a 2.3 percent contraction in 2023 and a substantial 7.3 percent decline in 2022 due to severe foreign exchange shortages impacting essential imports like food and fuel.
The Department of Census and Statistics commented on this positive change, stating, “After the two consecutive declines in GDP in 2022 and 2023, Sri Lanka’s economy recorded positive growth in 2024, paving the way for further optimism.” The sectors contributing to this growth include agriculture, industry, and services. The economic turmoil initiated widespread protests in early 2022, following which the then-president Gotabaya Rajapaksa was ousted.
His successor, Ranil Wickremesinghe, successfully negotiated a $2.9 billion bailout from the International Monetary Fund (IMF) in 2023, implementing rigorous economic reforms such as tax increases and price hikes. The current administration of Anura Kumara Dissanayake, who assumed office in September, has continued these austerity policies. Recently, the IMF acknowledged its ongoing bailout support, stating that Sri Lanka’s program performance “has been strong.”
Kenji Okamura, the IMF’s deputy managing director, indicated optimism for the future by stating, “Reforms in Sri Lanka are bearing fruit, and the economic recovery has been remarkable. The recovery is expected to continue in 2025.” This outlook reflects a gradual improvement and stabilization within the country’s economic landscape.
In conclusion, Sri Lanka’s economy has emerged from a significant crisis with a recorded growth of 5.0 percent in 2024, marking a pivotal recovery year. The government’s reforms, supported by the international community, particularly the IMF, have shown positive results. The continued growth in various sectors signals a hopeful outlook for the country’s economic future as efforts toward stabilization progress in 2025.
Original Source: www.thenews.com.pk
