Sri Lanka’s economy recorded a robust 5.4 per cent growth in the fourth quarter of 2024, marking its strongest expansion since the nation began its recovery in mid-2023. This is the highest growth rate since 2014, as per the latest GDP estimates from the Census and Statistics Department of Sri Lanka. In US dollar terms, the Sri Lankan economy reached close to 99 billion US dollars by the end of 2024 while per capita income rose to 4,516 US dollars, crossing the 4,000 US dollars mark for the first time. A strengthened rupee, appreciating by 10 per cent in 2024 after a 12 per cent rise in 2023, contributed to higher incomes in dollar terms.

The revival was buoyed by rising export and import volumes, increased cargo handling at ports, and improved liquidity in the economy, supported by lower interest rates and expanding domestic credit. Although for the fourth quarter, the agriculture sector faced a 2.2 per cent contraction due to production challenges, for the full year, all four segments of Industry, Services, Taxes less subsidies and agriculture posted growth with the Industries sector leading with 11 per cent.