In a positive development, the World Bank has announced that Sri Lanka’s economy is on a path to recovery, with growth projections revised upwards. According to the bi-annual report, “Sri Lanka Development Update: Opening up to the Future,” released yesterday, the country’s economy is expected to grow by 4.4% in 2024, surpassing the earlier estimate of 2.2%.
Speaking at the report launch, World Bank Country Manager for Sri Lanka and Maldives Gevorg Sargsyan noted that while the country has made significant strides in overcoming the economic crisis, the recovery remains fragile. He emphasized the need for continued reforms to ensure sustainable and inclusive growth.
The report highlights Sri Lanka’s untapped export potential, estimated at $10 billion annually. By diversifying exports and implementing necessary reforms, the country could generate around 142,500 new jobs. The World Bank underscores the importance of boosting exports, attracting foreign investment, enhancing female labor force participation, and improving productivity to achieve these goals.
While the economic outlook is improving, challenges such as poverty, food insecurity, and vulnerabilities in the financial sector remain. The report calls for urgent action to address these issues and ensure a more inclusive and sustainable recovery.
