Sri Lanka economy expands 4.7% in Q2
- 14 Sep 2024
Sri Lanka’s economy grew faster than expected in the second quarter, bolstering sentiment ahead of a crucial election that could affect policy as the country recovers from its worst crisis in decades, Bloomberg reported on Friday.
Gross domestic product rose 4.7 per cent in the three months to June from a year ago, the Statistics Department said Friday.
The south Asian island nation will hold a presidential election on 21st September.
The incumbent government secured a $3 billion bailout from the International Monetary Fund to finance the nation’s recovery from a default-induced slump.
To bolster growth further, Sri Lanka’s new government will have to complete restructuring debt and follow through on IMF-mandated reforms to keep the funds flowing.
The International Monetary Fund (IMF) approved the second review of Sri Lanka’s $2.9 billion bailout in June, but the global lender warned the economy remains vulnerable despite signs of recovery and urged Colombo to do more to restructure a hefty debt burden.
In a statement, the IMF said it will release about $336 million, taking total funding to around $1 billion, to the crisis-hit country and noted that signs of an economic recovery were emerging.
Meanwhile Sri Lanka sealed an agreement with bilateral creditors led by Japan and India, formalising a provisional agreement that the debt-ridden South Asian island nation reached in November.
