FX.co ★ Sri Lanka Central Bank Expects 4.5% GDP Growth in 2025

The Central Bank of Sri Lanka (CBSL) projects a 4.5% economic growth for the country in 2025, surpassing the World Bank's estimate of 3.5%. Nevertheless, the central bank's recent monetary report highlights that uncertainties remain due to external demand conditions and the shifting global economic landscape, impacting the nation's short- to mid-term growth prospects. Sri Lanka is in ongoing discussions with the United States concerning the recent imposition of a 20% tariff, down from 44% in April. In 2024, the country's GDP experienced a 5% growth, reflecting a robust recovery from the financial crisis encountered three years prior, aided by a $2.9 billion bailout from the International Monetary Fund (IMF). Moreover, the CBSL anticipates that inflation will continue to rise, reaching its 5% target by mid-2026, driven by improving demand conditions.