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ஜெனரல்
The Central Bank expects a 3% growth in the economy this year, fueled by eased monetary policies and low inflation. Following a positive performance in the latter half of 2023 after six quarters of contraction, sustained recovery is anticipated, as stated by the CBSL in its Annual Economic Review 2023 released last week. Factors such as a rebound in the tourism sector, lifted import restrictions, and favorable agricultural yields contribute to this outlook. Additionally, rising remittances, improved fiscal space from debt restructuring, and gradual wage adjustments are expected to bolster demand. However, challenges like human capital outflow, the impact of climate change, and the need for economic diversification persist, emphasizing the necessity for structural reforms and enhanced productivity across sectors. Strengthening social safety nets and addressing governance weaknesses are also crucial for sustainable growth.
In the near and medium term, external demand, particularly in tourism, is expected to remain robust, alongside potential export growth. Yet, sustaining this growth trajectory depends on continued adherence to the IMF-EFF program, completion of debt restructuring, and committed structural reforms by the government. Mitigating challenges such as demographic shifts and the impacts of climate change are critical to economic resilience. Efforts to enhance productivity and efficiency across sectors must be intensified, along with focused investments in social infrastructure. Timely implementation of governance reforms is imperative to ensure equitable growth and long-term prosperity.
