AEIR 2022

After contracting by 3.6% in 2020, reviving domestic demand and exports drove  growth up by 3.7% in 2021. Services grew by 3.0%, industry by 5.3%, and agriculture by 2.0%. The economic recovery, however, has been significantly affected by fiscal and monetary macroeconomic issues, apart from persistent COVID-19 restrictions. Private consumption rose by 7.5% in the first 9 months of 2021 from a low 2020 base, while government consumption increased by 2.2%, mostly to contain the pandemic. The Colombo consumer price index averaged 6.0% in 2021, up from 4.6% in 2020, accelerating to 15.1% year-on-year in February 2022. Stymied by a large debt overhang, fiscal and external financing needs, and double-digit inflation, among others, GDP growth is expected to slow to 2.4% in 2022 before rising slightly to 2.5% in 2023. 

Source: Asian Development Outlook 2022.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 7.0 (Jul22)7.0 7.0
Broad Money Growth 2 11.0 (Jun22)11.0 12.2
Headline Inflation Rate 3 58.9 (Jun22)45.3 6.1
Industrial/ Manufacturing Production Growth Rate 3 -2.3 (May22)-7.2 17.7
Merchandise Export Growth 3 23.9 (Jun22)23.9 16.7
Exchange Rate Index 4 354.6 (Jul22)353.4 195.2
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; Department of Census and Statistics; ; Central Bank of Sri Lanka.

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