Sri Lanka, Aug. 31 -- Sri Lanka's economic trajectory has been a rollercoaster in recent years, marked by a devastating crisis in 2022 that led to the country's first sovereign default since independence.

Triggered by a confluence of factors including depleted foreign reserves, unsustainable debt accumulation, and external shocks like the Covid-19 pandemic and the Russia-Ukraine war, the crisis resulted in acute shortages of essentials, hyperinflation peaking at over 70 percent, and widespread protests that toppled the Government.

Fast-forward to August 2025, and the island nation is in the midst of a fragile recovery, supported by an International Monetary Fund (IMF) bailout and domestic reforms.

Real GDP growth rebounded to five perc...