colombo: Sri Lanka’s economy could contract by -3.5% or -4.0% in 2023 after contracting by -11% last year, President Ranil Wickremesinghe said on Saturday.
“From 2024, we will lead this economy to positive growth.
Speaking at a religious event, he said that the economy could grow by -11% in 2022 and -3.5% or -4.0% this year.
He said Sri Lanka could witness further political instability if an economic program containing difficult policy changes such as tax increases, public spending cuts and debt restructuring is not implemented.
“No one can prevent the country from going back into crisis like it did in May and June last year,” Wickremesinghe said.
The island nation of 22 million people has struggled over the past year with challenges ranging from currency shortages to runaway inflation to a sharp recession. This is the worst crisis since independence from Britain in 1948.
The government signed a preliminary agreement on a $2.9 billion program with the International Monetary Fund (IMF) in September, but it must put the debt on a sustainable path before it can start making payments. – Reuters
