Sri Lanka’s budget deficit saw a significant reduction of 52% in the first half of 2024, dropping to 515.7 billion rupees. During the same period, government revenues surged by 42% to 1,860.6 billion rupees, driven largely by a 43% increase in tax revenues, totaling 1,709.3 billion rupees, according to interim budget data. The budget’s current
National consumer prices in Sri Lanka saw a slight increase in July, rising by 2.5% compared to the same month last year. This marks a modest uptick from the 2.4% increase observed in June, as the high base effects from the previous year began to dissipate. Despite this year-on-year rise, prices for many food and
Sri Lanka’s inflation is projected to remain below 3 percent through the first quarter of 2025, according to the Central Bank. This marks a breach of the lower threshold of the country’s 5 percent inflation target, which has been consistently maintained over the past several months. The Central Bank has proposed a 5 percent inflation
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
Sri Lanka’s remittances surged by 10.3% to $566.8 million in July 2024, marking a significant rise from the previous year, thanks to increased use of official banking channels by expatriates. State Minister of Finance Shehan Semasinghe announced on X (Twitter) that the total remittances for the first seven months of the year have reached $3.71
Sri Lanka’s balance of payments (BOP) remains in surplus in 2024, but it trails slightly behind the figures from 2023, according to official data. By June 2024, the country recorded a BOP surplus of $1.761 billion, compared to $1.957 billion in the same period the previous year. The surplus, reflecting an improvement in net international
Sri Lanka’s foreign exchange reserves experienced a marginal decline, reaching $5.649 billion in July 2024, down from $5.654 billion in June, according to official data. In June, the central bank sold approximately $57 million in the interbank market following a surge in liquidity from strong dollar purchases and an increase in private credit. Data for
The International Monetary Fund’s (IMF) stringent focus on an arbitrarily set primary balance target in Sri Lanka’s budget is exacerbating the country’s debt situation, warns an economic analyst. IMF Staff Mission Chief Peter Breuer emphasized the importance of achieving a 2.3 percent primary balance target of Gross Domestic Product (GDP) in his recent review statement.
Sri Lanka’s central bank has absorbed Rs. 546 billion of domestic money out of the Rs. 578.5 billion created from foreign exchange purchases in the six months leading up to June 2024, according to official data. The central bank generated Rs. 538.1 billion from forex purchases and an additional Rs. 40.4 billion net from buying
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