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Economy shows signs of recovery; CBSL optimistic

According to the Census and Statistics Department, Sri Lanka's GDP contracted by 3.1% in the second quarter of 2023, an improvement from the worrying 11.5% contraction in the first quarter, indicating a steady recovery. Year on year GDP growth was negative at 3.1% in Q2 2023, with major reductions in the industry and services sectors of 11.5% and 0.8%, respectively, while agriculture rose by 3.6%. The three principal economic sectors contributed 10.4%, 27.0%, and 56.8% of GDP, respectively, for 'Agriculture,' 'Industry,' and 'Services,' while 'Taxes less subsidies on products' contributed 5.8%. Despite these obstacles, the Central Bank of Sri Lanka anticipates that economic difficulties will endure in 2023, with a predicted 2% contraction, but expresses optimism for a 3.3% growth rate in 2024, following a turbulent year.

The Island