Sri Lanka’s economy will take another two to three years to recover to the level it was in 2018, according to Assistant Governor of the Central Bank, Dr Chandranath Amarasekara.

He made this observation during a discussion held after a public lecture titled “The Sri Lankan Economy Reflected Through the 2024 Annual Economic Review” at the Central Bank headquarters in Colombo yesterday (27).

Dr Amarasekara noted that between 2019 and 2023, the country experienced positive economic growth only in 2021. In the other four years, the economy contracted. He pointed to various crises including the Easter Sunday attacks, the COVID-19 pandemic, and the economic collapse as key reasons for this downturn.

He explained that Sri Lanka’s real Gross Domestic Product (GDP), which stood at Rs. 13.2 trillion in 2018, had dropped to Rs. 11.9 trillion by 2023. However, it is projected to grow to Rs. 12.5 trillion in 2024.

“If we take the period from 2019 to 2023, only 2021 saw real economic growth. In contrast, the economy contracted by 0.2% in 2019, 4.6% in 2020, 7.3% in 2022, and 2.3% in 2023. These were highly challenging years due to multiple crises,” he stated.

“In 2018, the real GDP was Rs. 13.2 trillion. By 2022, it had declined to Rs. 12.2 trillion, and further to Rs. 11.9 trillion in 2023. That shows a significant economic contraction and a decline in total national income. But with 5% growth in 2024, the economy has started to expand again, reaching Rs. 12.5 trillion,” he added.

“I believe it will take another two to three years for us to return to the economic position we held in 2018,” Dr Amarasekara said.