Sri Lanka, April 9 -- The Asian Development Bank's (ADB) flagship economic publication, the Asian Development Outlook (ADO) April 2025, forecasts Sri Lanka's recovery to continue at a moderate growth of 3.9% in 2025 and 3.4% in 2026 following the strong rebound in 2024.
Economic recovery that began in the second half of 2023 continued across all sectors in 2024. Inflation decelerated significantly in 2024 following major cuts in energy prices. Credit to the private sector picked up, reserves continued to build up, while tourism and remittances inflows remained strong. ADB expects recovery to continue in 2025 and 2026.
As uncertainties from elections and debt restructuring fade, improved investor confidence will support private investment,...