Sri Lanka's Public Debt Sustainability and Restructuring Update
Some past policy mistakes, the global COVID-19 pandemic and the resulting global crisis have
stunted Sri Lanka's growth projections, leaving the country exposed to the consequences of the
energy and food crisis
The COVID-19 pandemic jeopardized the key engines of the country's economic growth, including domestic demand and the tourism
sector, the awaited rebound was further halted by the subsequent energy and food crisis
Yearly Real GDP Growth'
In % y.o.y change
Earnings from Tourism
|(0.2%)
2019A
I
(3.5%)
In USDm
4,000
3,682
-81% reduction
4.3%
3.5%
3.3%
3.3%
3,000
2,000
Covid-19 impact
Economic crisis impact
2020A
Real GDP Growth
IMF World Economic Outlook 2021
2021P
I
1,000
(8.7%)
2022F
IMF World Economic Outlook 2019
•
0
Average 2015-19
893
682
507
2020
2021
Jan-Aug 2022
As the COVID-19 pandemic had an immediate impact on travel,
Sri Lanka's tourism earnings, a key strength of the country,
declined by over 80% in 2020, and have not recovered since
▸ The energy crisis has further exacerbated the difficulties Sri Lanka has been facing since the outbreak of the
COVID-19 pandemic and resulting economic shock, hampering the recovery of some key sectors while affecting
local production and consumption through record-high energy prices and shortages of basic goods
Sources: Central Bank of Sri Lanka, IMF
Note: (1) Actual GDP data for 2019, 2020 and 2021 are based on rebased GDP estimates (100-2015)View entire presentation