Category: Economy
IMF Reaches Staff-Level Agreement on Fourth Review under EFF with Sri Lanka; Global Trade Policy Uncertainty Poses Risks
IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the Fourth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility. Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$344 million in financing. Program performance remains […]
Pilot Project Launched in Southern Province to Strengthen Regional Contribution to Export Development
A strategic discussion aimed at enhancing the contribution of provincial export development was held on 22nd April 2025 under the patronage of Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development, at the Matara District Secretariat. The event marked the initiation of a pilot project in the Southern Province, designed to develop and implement a […]
‘s Q1 2025 Exports Surge by 5.87-pct, Reaching USS 4.21 Bn
Sri Lanka has demonstrated remarkable resilience and growth in its export sector during the first quarter of 2025, with total exports reaching US$ 4,212.13 Mn, reflecting a robust 5.87% growth compared to the same period last year. March 2025 proved particularly successful with total exports, including both merchandise and services, reaching US$ 1,507.90 Mn. This […]
SL Economy Outpaces Growth Projections, More Efforts Needed to Reduce Poverty, Boost Growth: WB
Sri Lanka’s economy has made a remarkable recovery in 2024, surpassing growth expectations by recording 5 percent growth, compared to the projected 4.4 percent, says the World Bank. This growth has been driven by strong performances in industry and services, particularly in construction and tourism-related services. In 2025, growth is expected to moderate to 3.5 […]
IMF staff team concludes visit to SL; discussions to continue toward reaching an agreement in near term
An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025. After constructive discussions in Colombo, Mr. Papageorgiou issued the following statement: “Sri Lanka’s ambitious reform agenda supported by the IMF Extended Fund Facility (EFF) continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in […]
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Frontier markets such as Sri Lanka, Pakistan (Caa2 positive) and Bangladesh, which do not have the capacity to import as much from the US and whose current account balances are relatively fragile, could see a worsening of their broader external positions that will potentially weigh further on the outlook for economic growth, according to the […]
CCPI in March 2025 signals easing of deflationary conditions
In line with the Central Bank’s near term projections, deflationary conditions commenced easing in March. Headline inflation, as measured by the year-on- year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) 1 remained in the negative territory for the seventh consecutive month, yet recorded a slower deflation of 2.6% in March 2025 compared […]
TISL Welcomes IMF Structural Benchmark on Asset Declarations
Transparency International Sri Lanka (TISL) welcomes the introduction of a new Structural Benchmark in the IMF’s Third Review Agreement, addressing gaps in implementing the Asset Declarations system under the Anti-Corruption Act of 2023. This is a significant step toward ensuring public access to asset declarations—a long-standing reform for which TISL has strongly advocated. The benchmark […]
Sri Lanka Exports Reach USD 1.38 Billion in February, Up 4.62-pct Year-on-Year
Total exports, including both merchandise and services, reached at US$ 1,382.53 Mn in February 2025, marking a notable 4.62% year-on- year growth compared to February 2024. Additionally, exports recorded a 2.58% month-on-month increase compared to January 2025. According to provisional data from Sri Lanka Customs and estimated figures for Gems & Jewellery and Petroleum Products, […]
Who Stands to Lose? The Effects of GSP+ Withdrawal on Sri Lanka’s Exports and Labour Force
Growing uncertainties on the future of global trade as President Trump seeks to impose reciprocal tariffs make programmes such as the European Union’s Generalised Scheme of Preferences Plus (GSP+) more significant for small exporters such as Sri Lanka. With a reported visit by EU representatives to assess GSP+, it is important to note that in […]
‘s Q4 GDP Growth Hits 5.4-pct, 2024 Projected at 5.0-pct
Issuing a communiqué, on releasing National Accounts Estimates, the DCS states that the GDP growth rate for the year 2024 has been estimated as 5.0 percent of positive growth rate. Accordingly, the Gross Domestic Product for Sri Lanka for the year 2024 at constant price (2015) increased up to Rs. 12,472,469 million from Rs. 11,877,556 […]
IMF Executive Board Completes the Third Review Under the Extended Fund Facility
The IMF Executive Board completed the Third Review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with immediate access to SDR 254 million (about US $334 million) to support its economic policies and reforms. Performance under the program has been strong. All quantitative targets for end-December 2024 were met, except the […]