Sri Lanka’s economy has contracted by 3.1 per cent in the second quarter of the year.
The contraction was driven by the subdued performance in Industry and Services activities while the Agriculture activities recorded a growth.
The Central Bank of Sri Lanka said Agriculture activities grew by 3.6 per cent, while Industry and Services activities contracted by 11.5 per cent and 0.8 per cent, respectively.
Furthermore, Taxes less Subsidies on Products recorded a 12.6 per cent increase.
Sri Lanka’s economy contracted 11.5 per cent in the first quarter of 2023, according to the Census and Statistics Department.
The economy shrank 7.8 per cent in 2022 from the previous year, as the country struggled with its worst financial crisis in more than seven decades.
However, Sri Lanka’s economy is expected to grow in the third and fourth quarters of this year, as the government has secured a deal with the International Monetary Fund and is in the process of finalizing a debt restructuring process, which will boost the confidence of the investors and the business community
