Sri Lanka’s struggling economy has shown signs of improvement for the time since the economic crisis struck the country as, per reports. The quarter GDP growth rate has seen an increase of 1.6% according to a statement from the Department of Census and Statistics (DCS) released on Friday.
After facing a decline of 8% and declaring bankruptcy in April 2022 Sri Lanka’s economy remained in territory from the fourth quarter of 2021. Despite receiving a $2.9 billion bailout from the International Monetary Fund (IMF) projections suggest that overall growth for Sri Lanka in 2023 will still be negative. However there are expectations for a growth rate in 2024.
The nation is currently undergoing reforms under an IMF program, led by President Ranil Wickremesinghe, who also serves as the finance minister. These reforms have faced criticism from opposition parties.
Are deemed necessary to address the cost of living and other challenges leading up, to the islands election year in 2024.
Wickremesinghe informed Parliament this week, about the necessity of reforms acknowledging the challenges experienced by the public.
Sri Lanka, having failed to meet its debt obligations is currently in talks with creditors to secure favorable terms, for repayment in order to ensure long term sustainability, a crucial aspect of the IMF rescue package.
