Sri Lanka's economy has shown signs of recovery following the severe crisis it faced in 2022. A recent report from the World Bank offers a more optimistic outlook for the country's future, projecting a growth rate of 4.4% in 2024, a significant revision upward from the previous estimate of 2.2%. Despite these improvements, the World Bank also cautioned that Sri Lanka is not yet fully out of danger.
Gevorg Sargsyan, the World Bank's country director, highlighted this mixed outlook in a press briefing, as reported by Press Trust of India. While the economy has grown faster than anticipated, he warned that the country still faces challenges. “The good news is that it grew faster than expected, but the bad news is that the recovery is not complete,” Sargsyan remarked, referencing the findings in the World Bank's latest report on Sri Lanka’s economy.
This positive development follows Sri Lanka's first sovereign default in April 2022, a historic event since the nation's independence in 1948. The government is currently negotiating with the International Monetary Fund (IMF) over the second disbursement of a $2.9 billion bailout package. The IMF has insisted on restructuring the country's external debt as a condition for further financial assistance, as noted in the World Bank report.
Read More: https://mirrorworldmagazine.com/world-bank-projects-4-4-growth-for-sri-lankas-economy-reports/