Sri Lankas economy is predicted to grow by 3.9% in the existing , according to the Asian Development Bank.The ADB stated Sri Lankas development exceeded expectations, rebounding by 5.0% in 2024, the greatest rate considering that 2017, after 2.3% contraction in 2023.
Sri Lankas recovery will continue at a moderate development of 3.9% in 2025 and 3.4% in 2026 following the strong rebound in 2024, the ADBs flagship economic publication, the Asian Development Outlook (ADO) April 2025 has indicated.It cautioned that although Sri Lankas development recovery surpassed expectations in 2024 it remains delicate.
The ADB noted that inflation has actually been in negative territory given that September 2024 due to high energy rate cuts.Following a high decline from 17.4% to 1.2 % in 2024, inflation is expected to increase to 3.1% in 2025 and 4.5% in 2026, driven by higher need from the continuous healing, greater electricity tariffs, and currency depreciation.It included, Inflation decelerated substantially in 2024 following significant cuts in energy rates.
Credit to the private sector got, reserves continued to build up, while tourist and remittances inflows stayed strong.
ADB expects recovery to continue in 2025 and 2026.
Growth in the South Asian region is anticipated to rise from 5.8% in 2024 to 6.0% in 2025 and 6.2% in 2026.
The development forecasts were completed prior to the 2 April statement of new tariffs by the United States administration, so the baseline projections just show tariffs that remained in location previously.However, ADO April 2025 does include an analysis of how higher tariffs might impact growth in Asia and the Pacific.