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.
|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.|
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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