IMF: Sri Lanka’s crisis-hit economy likely to resume growing in 2024 after contracting 3% this year

By KRISHAN FRANCIS
Associated Press

COLOMBO, Sri Lanka (AP) — The International Monetary Fund says Sri Lanka’s crisis-hit economy is expected to resume growing in 2024 after contracting 3% this year. Krishna Srinivasan, the IMF’s director for Asia and Pacific, says expected economic growth of 1.5% next year hinges critically on the economic reform program Sri Lanka has agreed to undertake. Sri Lanka nearly exhausted its foreign currency holdings last year and announced that it was suspending repayment of foreign loans. The crisis resulted in severe shortages of essentials such as medicines, fuel, cooking gas and food, leading to angry protests that forced the president to flee the country and resign. The IMF approved a nearly $3 billion rescue program in March which will run for four years.