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IMF says full recovery in Sri Lanka is not yet assured
10 Oct, 2023
The International Monetary Fund (IMF) says despite early signs of stabilization, a full recovery in Sri Lanka is not yet assured.
Daniel Leigh, a senior official in the International Monetary Fund?s research department said that the people of Sri Lanka have shown remarkable resilience.
“In the face of enormous challenges, Sri Lanka has made commendable progress in implementing difficult but much?needed reforms. And these reforms are already bearing fruit, as the economy is showing tentative signs of stabilization. Inflation is down from a peak of about 70 percent a year ago, in September 2022, down to below 2 percent in September 2023. Gross international reserves have increased. And shortages of essentials have eased,” he said.
Daniel Leigh also said that despite early signs of the stabilization, a full recovery is not yet assured.
“Growth momentum remains subdued, with real GDP in the second quarter contracting by 3.1 percent on a year?on?year basis and high?frequency economic indicators continuing to provide mixed signals,” he said.
Daniel Leigh said that sustained reforms, continuing with these reforms, is going to be critical to put the economy on a path toward a lasting recovery and stable and inclusive growth. (Colombo Gazette)
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