Sri Lanka\u2019s economy grew faster than expected last quarter, indicating strong domestic activity backed by the International Monetary Fund\u2019s aid.<\/p>\n
Gross domestic product rose 5.4% in the three months to December from a year ago, the Statistics Department said Tuesday, higher than the 5.3% expansion predicted by economists in a Bloomberg survey. GDP figures for July-September period were revised lower to 5.3% from 5.5% earlier.<\/p>\n
For the full year, the economy expanded 5%, bouncing from a contraction of 2.3% the previous year.<\/p>\n
Sri Lanka has turned the corner after an unprecedented default in 2022, with economic growth forecast to sustain around 5% in 2025. The South Asian nation secured about $334 million in IMF loans this month, helping bolster economic recovery.<\/p>\n
It needs to increase energy prices and meet fiscal parameters to continue getting funds from the lender.<\/p>\n
Industrial production grew 13.1% in the three months to December from a year ago, compared to 10.1% in the previous quarter. Services sector expanded 2.5% last quarter, while agricultural output contracted 2.2% during the period.<\/p>\n
Sri Lanka\u2019s central bank held its benchmark interest rate at 8% in the first policy meeting of 2025, to help inflation reach the target while supporting an economic revival. The next policy decision is scheduled for Mar. 26.<\/p>\n
Source: Bloomberg
\n–Agencies<\/p>\n
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