Sri Lanka’s GDP Growth Projected to Rebound Amid Pandemic and Vaccination
April, 30, 2021
The Asian Development Bank’s (ADB) flagship annual economic publication, the
Asian Development Outlook (ADO) 2021, forecasts a significant rebound in Sri Lanka’s economy as domestic and global economic activity strengthens and vaccination campaigns gather momentum domestically and abroad. ADB projects Sri Lanka’s economic growth to rise to 4.1% in 2021 and moderate to 3.6% in 2022.
Growth in the near term will come from increased private consumption supported by low-interest rates and as pent-up demand is released, as well as recovery in investment supported by low-interest rates, stronger global demand, and base effect following the contraction in 2020. Progress in the development of the Colombo Port City and Hambantota Industrial Zone will foster foreign direct investment and support growth, which will also benefit from various reforms planned by the government.