Sri Lanka’s positive economic growth, seen in early 2024, is likely to continue, supported by low inflation and a stable exchange rate, according to Central Bank Governor Nandalal Weerasinghe. In the first quarter of 2024, the country’s economy expanded by 5.3 percent, as estimated by the state statistics office.
Speaking at an international forum organized by the Insurance Association of Sri Lanka, Governor Weerasinghe highlighted that leading indicators point to a sustained growth momentum for the rest of the year. He noted that external sector stability has been largely restored, enabling the central bank to lower policy rates.
The financial sector’s stability has also contributed to the overall economic recovery. Reflecting on the last currency crisis, Weerasinghe mentioned the challenges faced by the insurance sector, including difficulties in paying re-insurance premiums and managing shortages of essential goods.
While high interest rates provided strong investment returns last year, falling rates now present new opportunities, particularly in the medical sector and with an aging population. Governor Weerasinghe also emphasized the potential for increased involvement of the insurance sector in agriculture, which could further support the economy’s recovery.