Asia Regional Integration Center
Tracking Asian Integration
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||9.0 (Feb23)||8.0||12.0|
|Broad Money Growth 2||8.9 (Dec22)||8.9||9.5|
|Headline Inflation Rate 3||59.2 (Dec22)||65.0||14.0|
|Industrial/ Manufacturing Production Growth Rate 3||-25.3 (Dec22)||-24.0||-2.6|
|Merchandise Export Growth 3||-11.5 (Jan23)||-11.5||-7.4|
|Exchange Rate Index 4||357.8 (Feb23)||358.5||197.7|
|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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