State Minister of Finance, Shehan Semasinghe, has announced that the Sri Lankan economy has stabilized and is now experiencing growth.
Notable improvements include the appreciation of the Sri Lankan Rupee from Rs. 360 per USD in 2022 to Rs. 300 per USD presently. Minister Semasinghe emphasized the market-determined nature of exchange rates in Sri Lanka, attributing the currency's strengthening to supply and demand dynamics in the foreign exchange market.
He stated that this appreciation will lower the cost of goods and services over time, consequently increasing purchasing power and aiding in reducing inflationary pressures. Furthermore, he highlighted a return to GDP growth, with a contraction of 7.8% in 2022 shifting to growth, particularly evident in the 3rd and 4th quarters of 2023, with Q4 GDP reaching 4.5%.
Minister Semasinghe commended the success of macroeconomic reforms, indicating that the government is now focusing on transitioning the economy towards a new growth trajectory.