In its annual flagship economic publication, the Asian Development Outlook (ADO) April 2024, the Asian Development Bank (ADB) has projected moderate growth for Sri Lanka's economy.

After two consecutive years of contractions, the island nation is expected to see growth of 1.9% in 2024 and 2.5% in 2025.The report highlights positive indicators of recovery, including a decrease in inflation to single digits, the accumulation of foreign exchange reserves, and an appreciating exchange rate.
Additionally, tourist arrivals and remittance inflows are on the rise, alongside improvements in supply conditions.However, the ADB emphasizes the importance of maintaining reform momentum and ensuring the completion of external debt restructuring for sustainable growth.
Utsav Kumar, ADB Deputy Country Director for Sri Lanka, commended the country's progress in implementing policy reforms but stressed the need to address the impact on vulnerable populations.As Sri Lanka stabilizes its economy, the ADB calls for efforts to support the most affected groups and tackle poverty and income inequality.

This includes implementing inclusive social protection systems and creating sustainable livelihoods to alleviate poverty.The ADB reaffirms its commitment to fostering prosperity, inclusivity, resilience, and sustainability in Asia and the Pacific, with a focus on eradicating extreme poverty. Established in 1966, the ADB is owned by 68 member countries, with 49 from the region.