It is underscoring the need to address the root causes of the country’s economic crisis and build a strong and resilient economy to prevent future crises.

Released last week week, the Sri Lanka Development Update (SLDU), Time to Reset projects the country’s economy to contract by 4.3% in 2023, as demand continues to be subdued, job and income losses intensify, and supply-side constraints adversely affect production.

The economic crisis in Sri Lanka has had deep impacts with over half a million jobs lost and 2.7 million additional people falling into poverty between 2021 and 2022,” said World Bank Country Director for Maldives, Nepal, and Sri Lanka Faris H. Hadad-Zervos.