Macro - Country Economic Forecasts - Sri Lanka
We have further downgraded our GDP growth forecasts for Sri Lanka by 2.5ppts to 2% in 2022 and by 1.9ppts to 2.4% in 2023 as the external debt crisis spills over to the domestic economy. The lack of foreign exchange (FX) reserves has led to a shortage of essential items, a spike in consumer prices, and a sharp currency depreciation. We now forecast the economy will enter a technical recession in Q2-Q3 this year as domestic demand contracts despite Sri Lanka's relative success with containing the pandemic. Risks are skewed to the downside as political unrest adds to macroeconomic uncertainty.
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook