Sri Lanka’s economy has grown by 5.5% year-on-year in the third quarter of 2024. According to the data released by the island’s Department of Census and Statistics, GDP at constant prices rose to about 3.152 trillion Lankan rupees up from 2.987 trillion rupees in Q3 2023. The growth was driven by a 3.0% expansion in agriculture, 10.8% in industrial activities, and 2.6% in services. Meanwhile, central government debt has been reported at 101.8% of GDP in September 2024, compared to 105.49% in December last year, however, total debt rose to 30,025 billion Lankan rupees in September, up from 29,146 billion rupees at the end of 2023.

Sri Lanka defaulted on its external debt obligations in April 2022 at the peak of the economic crisis. The island nation grappled with a shortage of essentials which was caused due to a forex crisis making it difficult to import several essential commodities. However, with active support from India, members of the Official Creditor Committee and the IMF, the island has managed to stabilise its economy returning to positive growth after a dismal performance in 2022 and 2023. The economy had contracted in 2022 by 7.3 per cent and in 2023 by 2.3 per cent.

President Anura Kumara Dissanayake in his recent visit to India met the business community where he highlighted the investor-friendly environment in Sri Lanka and invited Indian entrepreneurs to explore investment opportunities in the country.