Tuesday, October 3, 2023
HomeEconomySri Lanka's economy shrinks 8.4% in second quarter

Sri Lanka's economy shrinks 8.4% in second quarter

Uditha Jayasinghe

COLOMBO (Reuters) – Sri Lanka’s economy shrank by 8.4% in the April-June quarter compared with a year earlier, government statistics showed on Thursday. The country is battling its worst financial crisis in more than seven decades.

Severe shortage of U.S. dollars due to economic mismanagement and impact of Covid-19 – 19 Pandemic has left Sri Lankan people struggling to buy basic items such as food, fuel, fertilizers and medicines fighting for imported goods. 2022 Growth contracted 1.6% in the first quarter.

NBS says agriculture shrank 8.4% compared to the same period last year, and industry declined in percentage in the second quarter 10%, while the services sector fell 2.2%.

The Central Bank of Sri Lanka estimates 2022 that the economy will contract by about 8%.



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