IMF’s forecast on Sri Lanka’s economic growth this year

The International Monetary Fund (IMF) is forecasting the economy of Sri Lanka to grow by 2.6% this year down from 3.6% in 2021.

In its World Economic Outlook (WEO), a survey published twice a year, the IMF showed a projection of 2.7% for Sri Lanka’s real GDP growth.

The IMF has meanwhile urged Sri Lanka to tighten its monetary policy, raise tax and adopt flexible exchange rates to address its debt crisis.

The acting director of the IMF’s Asia and Pacific Department, Anne-Marie Gulde-Wolf said the requirement for fund lending will be progress toward debt sustainability.

She called on Sri Lanka for measures to increase tax revenues to address critical spending needs.

“Monetary policy has to be tightened to keep inflation in check,” she said, adding that there is a need for flexible exchange rates.