Sri Lanka's economy to contract by 5.5%

Sri Lanka’s economic output will contract by 5.5 percent in 2020 as the country is recovering from the heavy economic toll caused by the pandemic on the livelihoods and businesses, the Asian Development Bank (ADB) said. However, Sri Lanka’s economic growth is expected to pick up to 4.1 percent in 2021 in part due to a low base.

In their periodic assessment of the economies in Developing Asia—Asian Development Outlook (ADO)—, the ADB had given a less dour outlook for Sri Lanka for 2020 and a more positive case for 2021 than what they projected a few months earlier.

“Most economies in the Asia and Pacific region can expect a difficult growth path for the rest of 2020,” said ADB Chief Economist Yasuyuki Sawada said releasing an update to the lender’s Asian Development Outlook.