Sri Lanka Economic Recovery

What the Sri Lanka economic recovery has produced after the 2022 crisis

The Crisis

The Sri Lanka 2022 economic crisis -- the specific combination of the foreign exchange shortage, the fuel and medicine scarcity, and the political crisis that the protests produced -- was the most severe economic crisis in the country since independence. The IMF programme that the Wickremesinghe government negotiated and the specific fiscal adjustments the programme required are the accountability baseline for the recovery.

The Recovery

The recovery: the Sri Lanka GDP has returned to positive growth. The foreign exchange reserves have been rebuilt from the crisis level to the approximately 5 months of import coverage that the IMF programme targets. The specific debt restructuring with the official creditors -- the China, India, and the Paris Club agreement -- has been completed in principle with the specific haircuts that the debt sustainability analysis required.

Daily Asian News Coverage

Daily Asian News covers the Sri Lanka economic recovery because the accountability journalism of the most significant South Asian economic crisis of the past decade requires examining what the recovery has produced and whether it is sustainable.

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