Sri Lanka positive growth momentum to continue

There are clear signs and leading indicators that Sri Lanka’s positive growth in early 2024 will continue, with low inflation and the exchange rate also stable, Central Bank Governor Nandalal Weerasinghe said.

In the first quarter of 2024, Sri Lanka’s economy grew by 5.3 percent, according to the state statistics office estimate.

“After the strong positive growth in the first part of this year, leading indicators point to a continuation of this positive growth momentum during the remainder of this year,” Governor Weerasinghe told participants of an international forum organized by the Insurance Association of Sri Lanka.

“External sector stability has been restored to a great extent.”

Sri Lanka started to show positive growth, with inflation falling and the exchange rate being ‘broadly stable,’ which has also allowed the central bank to lower policy rates.

The financial sector was also stable, helping the economy.

He said the insurance sector also suffered during the last currency crisis.

Insurers faced difficulties in paying reinsurance premiums, and there were difficult choices to be made, with fuel and other goods in short supply, he recalled.

Last year, interest rates were high, giving strong investment returns, but now rates are falling.

The insurance sector had opportunities in the medical sector and an ageing population.

Governor Weerasinghe said that insurance firms can help recover the economy by providing long-term credit.

Governor Weerasinghe said he would like more involvement in the agriculture insurance sector. (Colombo/Aug14/2024)