Sri Lanka's Economic Recovery Gains Momentum, IMF Reports

The International Monetary Fund highlights significant improvements in Sri Lanka's economy, including a drastic reduction in inflation and economic expansion in the latter half of 2023.

• Inflation in Sri Lanka has decreased from a peak of 70% in 2022 to 5.9% last month, signaling a notable improvement in the cost of living.
• The country's economy expanded in the second half of 2023, with a 1.6% growth in the third quarter and a 4.5% increase in the fourth quarter, marking a turnaround from previous contraction.
• Sri Lanka has received two payments from a four-year IMF bailout program, totaling about $1 billion, with more funds expected upon successful economic reform reviews.
• Major creditors, including India, Japan, and China, have offered promises of debt forgiveness, aiding in the nation's financial recovery.
• Despite economic improvements, challenges remain, such as high taxes, a high cost of living, and persistent unemployment, affecting Sri Lankans' buying power and quality of life.

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