Sri Lanka’s economic turnaround continues to gain momentum, with the Central Bank today presenting its Annual Economic Review 2024 to President and Finance Minister Anura Kumara Dissanayake. The review puts in perspective the nation’s recovery from its 2022 economic crisis, the worst in its post-independence history.

The publication, handed over by Central Bank Governor Dr. P. Nandalal Weerasinghe at a ceremony at the Presidential Secretariat, outlines improved macroeconomic stability, a partial restoration of purchasing power, and a reduction in economic uncertainty as key indicators of progress. The Review attributes the faster-than-expected recovery to stringent reforms, international cooperation with India being at the forefront, and prudent central bank policy.

In 2022, Sri Lanka’s economy had all but ground to a halt amid an acute forex shortage leading to soaring inflation, crippling fuel shortages, and sovereign default. The island nation, heavily reliant on imports, faced acute hardships that led to political upheaval and social unrest.

Among the major contributors to the recovery was India, whose timely assistance during the crisis- amounting to over $4 billion in credit lines and humanitarian aid- helped stabilize critical sectors. The recent visit of Prime Minister Narendra Modi reaffirmed India’s commitment to Sri Lanka’s recovery, while Sri Lanka conferring the highest Honour of Mitra Vibhushan highlights India’s efforts in helping the island recover from the crisis.