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Sri Lanka records strong economic recovery in 2025

Sri Lanka records strong economic recovery in 2025

03 Jan 2026 | BY Staff Writer

Despite the impact of Cyclone Ditwah, Sri Lanka recorded a strong economic recovery in 2025 with IMF-backed reforms driving growth. Tax revenue hit a record Rs. 2,203 billion, while total government revenue rose 35% year-on-year, according to official data.


Worker remittances increased by 21%, gross reserves stood at US$6 billion, and tourism reached an all-time high with over 2.34 million arrivals. 


The Colombo Stock Exchange also posted record gains, reflecting renewed investor confidence and a marked turnaround from the recent economic crisis.


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