According to Reuters, Sri Lanka’s economy has shrunk by 7.8% in 2022 from the year 2021 base on the Department of Census and Statistics data release yesterday (15 March). Reuters has reported this based on the data published by the Department of Census and Statistics.
To put this in perspective, the GDP for the year of 2022 at constant price (2015) has declined to Rs. 12,017,849 million from Rs. 13,037,934 million recorded in 2021. This is a contraction of the GDP by 7.8% from last year. Furthermore, in the last quarter of the year, GDP of Sri lanka has indicated a negative growth of around 12%.
According to the data published, Agriculture, industry and services activities has declined by 4.6%, 16% and 2% respectively in the year 2022.
Reuter’s has quoted Senior Vice President Research at Asia Securrities, Sanjeewa Fernando ‘these numbers are broadly in line with expectations. In the last months of 2022 Sri Lanka was affected by extremely high inflation, fuel shortages, increase interest rates as well as lack of investor confidence.
Sri Lanka is currently waiting on the loan approval from the IMF to announce the manner in which countries currency will be restructured.
by Daily News Sri Lanka
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