Highlighting significant improvements in the country’s external sector, Sri Lanka’s Minister of State for Finance, Ranjith Siyambalapitiya, announced impressive statistics from the Central Bank of Sri Lanka’s mid-week report. Speaking in his home constituency of Ruwanwella, the minister revealed that tourism revenue in January 2024 soared to USD 342 million, marking a remarkable 122% increase compared to the previous year.
Additionally, inward remittances from Sri Lankan expatriates witnessed a 5% growth, reaching USD 488 million in January 2024, up from USD 467 million in January 2023. Notably, the Sri Lankan rupee experienced a notable appreciation of 14.6% in January 2024, following a significant slump during the economic crisis.
Furthermore, foreign reserves surged to USD 4.5 billion in January 2024, reflecting a remarkable 114% rise from USD 2.1 billion in January 2023. Siyambalapitiya also mentioned that after six consecutive quarters of negative growth, the economy recorded positive growth in the third quarter of 2023.
Sri Lanka faced severe economic challenges, culminating in a sovereign default in the second quarter of 2022. Subsequently, negotiations with the International Monetary Fund (IMF) for a bailout commenced, resulting in the release of the first tranche of the USD 2.9 billion facility in March 2023. However, the IMF-driven reforms have sparked controversy, leading to unpopular economic measures by the government, including high taxes and utility tariff hikes.
As IMF officials prepare for their second review visit, expected this week, the finance ministry anticipates the release of the third tranche of the IMF facility by around June. Amidst these developments, opposition parties have pledged to renegotiate the IMF bailout to alleviate economic burdens on the public. With a presidential election scheduled by year-end, Sri Lanka faces crucial decisions regarding its economic future.
