Sri Lanka has reported 1.6 per cent of positive growth for the third quarter in the year-on-year GDP growth rate, according to the data reported by the Department of Census and Statistics (DCS). The data claims to be the first since the economic crisis hit the island nation.

Earlier, the reports of April 2022 stated that the country had recorded minus 8 per cent growth when it declared bankruptcy. The data reported for the fourth quarter of 2021 was in negative form as well. Given the reports of the economy, the country is expected to grow with a positive growth rate in 2024.

Sri Lanka is undergoing a strict reform regime by the International Monetary Fund (IMF). The IMF had earlier stated that the nation's overall growth for 2023 would remain negative when they released the second tranche of its USD 2.9 billion bailout earlier this week.

Nation President and Finance Minister Ranil Wickremesinghe insisted on reforms despite strong criticism from the opposition, as he claimed them to be essential despite the public hardships.

These reforms, along with a high cost of living, are expected to play a significant role in the island’s election year in 2024. Sri Lanka, which defaulted on its sovereign debt, is still in negotiations with external creditors for concessions on repayment to achieve sustainability, a key component of the IMF bailout.

(With inputs from PTI)