Economy has stabilized and growth is now emerging

Economy has stabilized and growth is now emerging, says State Minister of Finance

by Staff Writer 27-04-2024 | 5:05 PM

Colombo (News 1st); State Minister of Finance Shehan Semasinghe highlighted that the Sri Lankan economy has stabilized and growth is now emerging.

The Sri Lankan appreciated from Rs. 360 per USD in 2022 to Rs. 300 per USD at present.

He posted on X: “It is important to understand that exchange rates in Sri Lanka is market-determined which allows currency values to adjust according to supply and demand dynamics in the foreign exchange market”.

He said that strengthening of the Sri Lankan Rupee will make purchasing of goods and services cheaper over the period.

He added: “This will result in increased purchasing power, help reduce inflationary pressures and contribute to price stability and stability in the financial system. Importantly reduce the burden of debt servicing of the country”.

The State Minister said that the GDP which contracted 7.8% in 2022 returned to growth in the 3rd and 4th quarters of 2023, with Q4 GDP growth reaching 4.5%.

He says recognising progress in macroeconomic reforms, the measures to stabilise the economy have been thus far been successful, and the government is now in the process of shifting the economy to a new growth path.