Sri Lanka’s Growth Cools as Monetary Policy Easing Renewed

The Sri Lankan economy grew at a slower pace last quarter, as a high base is beginning to catch up.

Gross domestic product rose 4.8% in the three months to March from a year ago, the Statistics Department said Monday. That compares with a reading of 5.4% in the October-December period.

The cooling justifies the local monetary authority’s decision to return to a policy easing cycle last month as it looks to steer inflation toward a 5% target amid external uncertainties.

The island nation, recovering from a historic debt default and economic crisis, surpassed growth projections in 2024, supported by ...