INSUBCONTINENT EXCLUSIVE:
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.
