Asian Development Bank revises down Sri Lanka's inflation forecast for 2024

(MENAFN) The Asian Development Bank (ADB) has revised down Sri Lanka's inflation forecast for 2024, attributing this adjustment to improvements in supply-side conditions and stronger external financial buffers, including enhanced availability of foreign currency. This update is part of the ADB's latest economic forecast for Asia and the Pacific, released in July.

The revised outlook reflects a more favorable economic environment compared to previous expectations. In the first quarter of 2024, Sri Lanka's economic performance exceeded the predictions outlined in the Asian Development Outlook of April 2024. However, despite this positive development, growth forecasts for 2024 and 2025 remain unchanged due to the potential uncertainties surrounding the upcoming election cycle, which is set to commence in the latter half of the year.

In recent developments, Sri Lanka has successfully concluded comprehensive bilateral debt restructuring agreements with several key bilateral creditors. This significant progress in managing the country's debt obligations is expected to contribute to economic stability.

According to earlier forecasts by the World Bank, Sri Lanka's economy is projected to achieve moderate growth of 2.2 percent in 2024. This forecast signifies a recovery and stabilization of the economy following the severe downturn experienced in 2022. The improved inflation outlook and the anticipated moderate growth underscore the country's ongoing efforts to navigate economic challenges and restore stability.

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