Sri Lanka economy expands 4.7% ahead of presidential vote
Gross domestic product rose 4.7% in the three months to June from a year ago
SRI Lanka’s economy grew faster than expected in the second quarter, bolstering sentiment ahead of a crucial election that could affect policy as the country recovers from its worst crisis in decades.
Gross domestic product rose 4.7 per cent in the three months to June from a year ago, the Statistics Department said on Friday (Sep 13). That compares with a forecast of 4.3 per cent in a Bloomberg survey of economists and a print of 5.3 per cent in the January-March period.
The island nation will hold a presidential election on Sept 21, the first poll since an unprecedented crisis led to the ouster of the strongman leader Gotabaya Rajapaksa. Incumbent Ranil Wickremesinghe, who was voted into power by parliament, secured a US$3 billion bailout from the International Monetary Fund to finance the nation’s recovery from a default-induced slump, but higher taxes and utility bills have made him deeply unpopular.
To bolster growth further, Sri Lanka’s new leader will have to complete restructuring debt and follow through on IMF-mandated reforms to keep the funds flowing. BLOOMBERG
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