• Sri Lanka's economy grew by 5.3% in Q1 2024, accelerating from 4.5% in Q4 2023, marking a recovery from previous recessions and driven by improved foreign currency access and reduced inflation.

Sri Lanka's economy rebounded in the first quarter of 2024, growing at a faster pace of 5.3% compared to 4.5% in the previous quarter, fueled by improved access to foreign currency and easing inflation. The agricultural sector expanded by 1.1%, while the industry and services sectors saw significant growth of 11.8% and 2.6% respectively, rebounding from previous contractions. This recovery follows the end of a six-quarter recession in 2023 and reflects a return to near-normal economic conditions seen before mid-2021. Lower inflation levels and reduced interest rates boosted economic activity, particularly benefiting the construction and manufacturing sectors. Additionally, increased liquidity and eased import restrictions contributed to expansions in tourism-related industries, further supporting overall economic recovery.

Economy accelerates in 1Q to 5.3% from 4.5% in 4Q last year | Daily Mirror