Sri Lanka

Sri Lanka’s GDP grew by 5.4% in Q4 2024 compared to the same period a year earlier. For the entire year, the economy expanded by 5%, recovering from a 2.3% contraction in 2023. This growth was supported by IMF aid, including a USD 334 mln loan in March 2025. The country is forecasted to sustain growth of around 5% in 2025, with progress needed in energy price adjustments and fiscal discipline to continue receiving IMF funds.