By Uditha Jayasinghe

COLOMBO (Reuters) -Sri Lanka’s economy will grow by 4.5% this year, the central bank said in a monetary policy report on Friday, despite some risks to the island nation’s recovery from U.S. tariffs.

The central bank’s projection is above World Bank estimates of 3.5% growth for this year.

Underpinned by a $2.9 billion International Monetary Fund (IMF) programme, Sri Lanka’s gross domestic product grew by 5% in 2024, rebounding strongly from a severe financial crisis three years ago.

The central bank’s report did highlight some risks to the outlook.

“However, external demand conditions and evolving global economic landscape increase the level of uncertainty associated with growth prospects over the near to medium term,” it said.

Sri Lanka is continuing talks with t

See Full Page