Sri Lanka's economy gained 5.0% y/y in 2024, representing the strongest rebound since 2018. The services sector was the biggest contributor to 2024 growth (1.5ppts), followed by the manufacturing and construction sectors. We've maintained our 2025 GDP forecast of 3.8% y/y, but have revised down our 2025 inflation forecast to -0.9% from the previous 3.0%, reflecting the longer-than-expected period of deflation.
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