CBSL Projects 4.5% Economic Growth in 2025, Surpassing World Bank Forecast

The Central Bank of Sri Lanka (CBSL) projects the country’s economy to grow by 4.5% in 2025, exceeding the World Bank’s forecast of 3.5%. The estimate was revealed in the Bank’s latest monetary policy report, released yesterday (15).

Backed by the US$ 2.9 billion International Monetary Fund (IMF) programme, Sri Lanka’s GDP grew by 5% in 2024, marking a strong recovery from the severe financial crisis experienced three years ago.

However, the CBSL cautioned that external demand conditions and the evolving global economic landscape pose uncertainties to the near- and medium-term growth outlook.

Inflation has continued to ease, with the consumer price index falling by 0.3% in July, down sharply from the peak of 70% in September 2022, largely due to lower power tariffs and food prices.

The CBSL kept its benchmark interest rate steady at 7.75% last month, following a 25 basis point cut in May. The Bank also expects robust GDP growth in the second quarter of 2025, sustaining the positive momentum seen in 2024.

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