Sri Lanka recovering faster than expected: World Bank [Video]

Cash-strapped Sri Lanka’s economy was recovering faster than expected, the World Bank said Thursday, doubling the island’s growth forecast to 4.4 percent for 2024.

Tourism and financial services had bounced back, along with improvements in construction, leading to the Bank’s upward revision of the forecast of 2.2 percent made in April.

Sri Lanka’s growth is expected to moderate next year to 3.5 percent and a slower 3.1 percent in 2026, the Bank said.

The island’s 4.4 percent growth forecast for 2024 was, however, lower than the South Asia region’s 6.4 percent, revised data of the World Bank showed.

The Bank “cautions” that Sri Lanka’s recovery remained fragile and hinged on maintaining stability.

It also called for completing a restructure of Sri Lanka’s external debt and continuing reforms to increase medium-term growth and reduce poverty.

The international lender on Monday granted a new $200 million loan to bolster economic recovery, the …