WEB DESK
The Sri Lankan economy suffered the worst ever contraction of 7.8% in 2022 as per data released by the Department of Census and Statistics. The worst performance was seen in the fourth quarter, dealing a severe blow of 12.4% negative growth. The contraction in the economy last year was in contrast to 3.5% growth in 2021. The Industries sectors suffered the worst contraction of 16% and the sector shrank by 30% in the fourth quarter.
The census and statistics department said that the economy had shown gradual recovery in 2021 after two years of slowdown owing to the Pandemic and lockdowns. However, deepening of economic crisis in early 2022 and social unrest in addition to power disruptions, and shortages in fuel, raw materials and foreign currency affected supply chain, disruptions which adversely impacted the economy.
At the time of the 75th Independence Day celebrations, Sri Lankan President Ranil Wickremesinghe had said that the economy may shrink by 3.5 to 4 percent this year as well, but, positive growth may return from next year. Sri Lanka has been facing its worst ever economic crisis since its independence in 1948. The island nation was hit by acute forex shortages resulting in short supply of essentials such as food, fuel, medicines and fertilisers. Sri Lanka has been making efforts to unlock a 2.9 billion dollar bailout from IMF which will be considered by the IMF board on Monday.