Sri Lanka is poised to achieve close to 4% economic growth by the end of 2024, continuing its positive momentum, according to Central Bank Governor Dr. Nandalal Weerasinghe.
Speaking at an event organized by CMA Sri Lanka last week, Weerasinghe highlighted that all leading indicators suggest sustained positive growth in the second quarter and throughout the year. “We are hoping for close to 4% year-on-year positive growth after a couple of years of negative contraction of the economy,” he said.
Earlier this month, Finance State Minister Shehan Semasinghe stated that authorities expect economic growth between 3-3.5% in 2024, despite lower forecasts by the International Monetary Fund (IMF) and the World Bank, which predict 2% and 2.2% GDP growth, respectively.
Additionally, Weerasinghe noted that inflation acceleration is between 1-2%, despite the Central Bank of Sri Lanka (CBSL) targeting a 5% range. “Inflation is still well below and underperforming,” he said, acknowledging this as a challenge for CBSL’s commitment to maintaining single-digit inflation. “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 added.