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SL economy shrinks in 2020, rebound expected this year: CBSL

According to the 2020 annual report of the Central Bank of Sri Lanka which was released today (30), the country’s economy has shrunk by 3.6 percent last year due to the Covid-19 pandemic.

In comparison to previous economic downturns experienced by the country in the past, 2020’s figures show that this has been the worst economic downturn since independence from Britain in 1948.

The annual report also notes that in 2019, Sri Lanka experienced a 2.3 percent GDP growth

However, the report states that the country’s economy would rebound in 2021 and record an optimistic six per cent growth on the back of improved local manufacturing and services.

“The pandemic has also offered an opportunity to reset the economy’s focus and to address longstanding structural weaknesses and establish a production-based, productivity-driven economy,” the annual report said.

The CBSL annual report also highlighted that the central government’s debt also rose to 101 percent of GDP last year, up from 86.8 percent of GDP in the previous year.