Sri Lanka’s economic crisis has bottomed out. Stabilization is expected with the launch of an IMF support program.
Sri Lanka, which experienced a severe economic crisis in 2022, agreed to an Expanded Financial Assistance (EFF) program of approximately $3 billion with the IMF in March 2023. In July of the same year, it passed the first stage of review, and a path to economic recovery and stabilization became visible.
At the peak of the crisis in 2022, Sri Lanka’s GDP growth rate fell to -7.3%, and shortages of fuel and food due to a lack of foreign currency became severe. However, thanks to fiscal reconstruction efforts supported by the IMF, inflation rapidly declined. From the latter half of 2023, domestic demand began to recover, and economic stabilization began.
The Port City Colombo Special Economic Zone was designed as a special economic zone independent of the Sri Lankan economy, and development continued unaffected by the economic crisis. Now that the crisis has passed, it is a historic time to reap the first-mover advantages of early investment. Our organization provides support for businesses expanding into Port City.
Source: IMF “Sri Lanka EFF Programme” and various World Bank documents (2023)