In 2023, the Sri Lankan economy showed signs of rebound with a moderate contraction of 2.3 per cent, in comparison to a significant contraction of 7.3 per cent observed in 2022. The gradual yet steady rebound in 2023 was evident, particularly in the second half of the year, during which the Gross Domestic Product (GDP) recorded positive growth rates. This was underpinned by renewed macroeconomic stability amidst softening inflation and easing of external sector pressures.

The Services Sector declined by 0.2% in 2023 and this was influenced by the growth in accommodation, food and beverage services, and transport activities, mainly attributable to the gradual revival of the tourism sector and the uninterrupted provisioning of power and energy.

The Industry Sector declined by 9.2% in 2023 and this was influenced by the notable decline in the construction industry and significant decline in global demand for the manufacture of textiles, wearing apparel and leather-related products.

The Agriculture Sector grew by 2.6% in 2023 and this was influenced by the improved supply conditions, especially fertiliser, other agrochemical inputs and fuel.

Source: Annual Economic Review 2023 | Central Bank of Sri Lanka