Economy of Sri Lanka

The mixed economy of Sri Lanka was valued at LKR 29.89 trillion (around $99 billion) in 2024 by gross domestic product (GDP) and $342.6 billion by purchasing power parity (PPP) Sri Lanka's economy expanded by 5.0% in 2024, marking a strong recovery from the 2022 economic crisis. Sri Lanka has met the Millennium Development Goal (MDG) target of halving extreme poverty and is on track to meet most of the other MDGs, outperforming other South Asian countries. Sri Lanka's poverty headcount index was 4.1% by 2016. Since the end of the three-decade-long Sri Lankan Civil War, Sri Lanka has begun focusing on long-term strategic and structural development challenges and has financed several infrastructure projects. High foreign debt, economic mismanagement under the governments of Gotabhaya and Mahinda Rajapaksa, and reduced tourism revenue led to the country defaulting on its sovereign debt in April 2022. The economy contracted 7.8% in 2022, and the percentage of the population earning less than $3.65 a day doubled to around 25% of the population. On March 20, 2023, the IMF loaned US$3 billion to the country as part of a 48-month debt relief program.