Sri Lanka showing signs of recovery from economic crisis: ADB

21 Mar '24

2 min read

Pic: Adobe Stock

Insights

As per ADB, Sri Lanka's economic growth returned to positive territory in second half of 2023 and that momentum is likely to continue.
ADB also launched a new country partnership strategy (CPS) for the island nation covering the period 2024–2028, with its strategy focussing on restoring Sri Lanka's macroeconomic stability and reviving growth.

Underlining economic growth has returned to positive territory in the second half of 2023 and that momentum is likely to continue, the Asian Development Bank (ADB), which is a multilateral development financing institution dedicated to reducing poverty in Asia and the Pacific, has stated the island nation is showing signs of stability and recovery from a deep economic crisis.

Between September 2022 and December 2023, Sri Lanka’s inflation significantly declined from 69.8 per cent to 4 per cent even as its foreign exchange reserves have increased to $4.4 billion in 2023 from $1.9 billion in 2022, ADB said in a press release.

Meanwhile the ADB has launched a new country partnership strategy (CPS) for the island nation covering the period 2024–2028, with its strategy focussing on restoring Sri Lanka’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience.

Takafumi Kadono, ADB country director for Sri Lanka opined this new partnership strategy will build on ADB’s ongoing assistance to support Sri Lanka’s efforts to restore macroeconomic stability, and to achieve green and long-term sustainable growth.

The multilateral development financing institution under the new CPS for Sri Lanka will reportedly focus on three strategic objectives centring fostering private sector development promoting green growth, strengthening public financial management and governance, and improving access to climate-smart public services and deepening inclusion.

Fibre2Fashion News Desk (DR)

More Asian Development Bank News...