October 4, 2023
1 min read

Lanka’s Economic Outlook Improving, Says World Bank

Following an 81% depreciation against the US Dollar in 2022, the Sri Lankan Rupee (LKR) has appreciated by 11% from January to August 2023…reports Asian Lite News

Sri Lanka’s economy is displaying signs of stability and a positive trajectory, as highlighted by World Bank Economist Richard Walker during his recent address in Colombo. The country’s economy is projected to achieve a growth rate of 1.7% in 2024, rebounding from a contraction of 3.8% in 2023.

Walker noted a significant decline in inflation, which had previously reached approximately 70%, now reduced to single-digit levels after about 19 months. Furthermore, interest rates have also seen a decrease. The bolstering of foreign reserves is expected through increased tourism, remittances, and inflows from development partners, Daily News reported.

“This has contributed to the accumulation of usable official reserves, with a substantial increase observed due to foreign exchange inflows, thereby positively impacting the balance of payments in the first half of this year,” explained Walker. Following an 81% depreciation against the US Dollar in 2022, the Sri Lankan Rupee (LKR) has appreciated by 11% from January to August 2023.

Meanwhile, the World Bank Group said it has approved $700 million in financing for two operations to help Sri Lanka implement foundational reforms as the island nation is trying to overcome its worst-ever economic crisis.

The World Bank Group’s Board of Executive Directors discussed the new Country Partnership Framework (CPF) for Sri Lanka, which aims to help restore economic and financial sector stability and build a strong foundation for a green, resilient, and inclusive recovery, reports Xinhua news agency quoting an official statement issued by the global lender.

The CPF, which covers the years from 2024 to 2027, lays out a two-phased approach that starts with a focus on urgent macro-fiscal and structural reforms and supports protecting the human capital and the most vulnerable population.

The statement said it comes at a time when the country is navigating its worst-ever economic crisis that has had devastating impacts on people’s lives and demands deep reforms to stabilise the economy and protect the poor and vulnerable.

ALSO READ: Afghan Women Seek New Avenues of Empowerment

Previous Story

Study on electrons with attosecond pulses wins Nobel in Physics  

Next Story

‘Over 400 Indian Firms Have Invested in Vietnam’

Latest from -Top News

Pakistan FM Due in Bangladesh

During his visit Dar will hold discussions with the Foreign Affairs Advisor Towhid Hossain and also call on Muhammad Yunus…reports Asian Lite News Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar

Balochistan: Where the State Makes People Disappear

The victims include students, journalists, and peaceful protesters, many of whom were abducted from cities such as Karachi and Islamabad….reports Asian Lite News A human rights organisation on Monday revealed that 785

Monsoon Havoc in Pakistan

Since June 26, torrential rains have killed at least 299 people—including 140 children—and injured 715 in Pakistan…reports Asian Lite News Since June 26, torrential monsoon rains have devastated Pakistan, killing at least

Bangladesh’s Dark Turn

With the Awami League outlawed and absent from the electoral fray, a vacuum has emerged — one that has not necessarily been filled with stability….reports Asian Lite News Bangladesh’s political landscape has
Go toTop

Don't Miss

India’s valiant bid to recover influence in Lanka

New Delhi now hopes to recover some of the ground

Stage set in Lanka for Gotabaya Rajapaksa’s return

The Commission headed by a retired Supreme Court judge recommended