The Sri Lankan economy witnessed a gradual revival in 2023 from the deepest economic downturn in its post-Independence history, the Central Bank of Sri Lanka in its Annual Economic Review 2023 report said.
The report was presented to Finance Minister President Ranil Wickremesinghe by Central Bank Governor Dr. Nandalal Weerasinghe yesterday.
The report said that decisive policy adjustments and structural reforms implemented by the Government and the Central Bank helped restore macroeconomic stability to a great extent. “These measures were essential to prevent further deepening of the crisis and to navigate the economy along a sustainable path of recovery. With risks abound, the unwavering commitment of policymakers along with wider public acceptance remains imperative to continue with the economic reform agenda and efforts to regain debt sustainability”, the report said. The CBSL report said that Inflation was contained at single-digit levels by end 2023 from its highest level recorded in 2022, enabling the commencement of monetary policy normalisation.
The economy recorded an expansion in the second half of 2023 bringing an end to the longest streak of economic contraction of six consecutive quarters. The persistent twin deficit of the overall government budget and the external current account, which was the root cause of the economic downturn, showed signs of correction in 2023.
