Sri Lanka, April 9 -- Sri Lanka's economy is projected to grow by 3.9% in the current fiscal year, according to the Asian Development Bank.

The ADB said Sri Lanka's growth exceeded expectations, rebounding by 5.0% in 2024, the highest rate since 2017, after 2.3% contraction in 2023.

Sri Lanka's recovery will continue at a moderate growth of 3.9% in 2025 and 3.4% in 2026 following the strong rebound in 2024, the ADB's flagship economic publication, the Asian Development Outlook (ADO) April 2025 has indicated.

It cautioned that although Sri Lanka's growth recovery exceeded expectations in 2024 it remains fragile. The ADB noted that inflation has been in negative territory since September 2024 due to steep utility price cuts.

Following a...