Editing Economy of Sri Lanka (section)

=== GDP growth 2021 and projections for 2022 ===

'''2020: -4, 2021: 4, 2022(f) 3 IMF'''

Sri Lanka's economy could grow 3% in 2022, the International Monetary Fund has said while warning that risk were on the downside and the economy could implode with trade contractions and monetary instability money printing (central bank credit) continued.<ref>{{cite web |title=IMF Executive Board Concludes 2021 Article IV Consultation with Sri Lanka |url=https://www.imf.org/en/News/Articles/2022/03/02/pr2254-sri-lanka-imf-executive-board-concludes-2021-article-iv-consultation-with-sri-lanka |website=imf.org |publisher=International Monetary Fund |access-date=17 April 2022}}</ref><ref>{{cite news |title=Sri Lanka money printing, deficits could lead to economic implosion: IMF report |url=https://economynext.com/sri-lanka-money-printing-deficits-could-lead-to-economic-implosion-imf-report-91152/ |access-date=17 April 2022 |publisher=economynext.com |date=4 March 2022}}</ref> In 2021 Sri Lanka grew 4% amid though excessive central bank financing had led to balance of payments deficits and foreign exchange shortages.<ref>{{cite news |title=Sri Lanka GDP grows 3.7-pct in 2021, fourth quarter 1.8-pct |url=https://economynext.com/sri-lanka-gdp-grows-3-7-pct-in-2021-fourth-quarter-1-8-pct-92225/ |access-date=17 April 2022 |publisher=Economynext.om |date=29 March 2022}}</ref><ref name="2021CBSL">{{cite news |title=Sri Lanka economy managed in 'alternative' way, critics on wrong track: CB Governor |url=https://economynext.com/sri-lanka-economy-managed-in-alternative-way-critics-on-wrong-track-cb-governor-78813/ |access-date=11 April 2021 |publisher=EconomyNext.com |date=12 February 2021}}</ref> Despite progress in managing Coronavirus, external debt remains a challenge amid concerns over money printing under Modern Monetary Theory independent economists had warned earlier.<ref>{{cite news |title=MMT, money printing and Keynes |url=http://www.ft.lk/columns/MMT--money-printing-and-Keynes/4-715798 |access-date=11 April 2021 |publisher=[[DailyFt]] |date=5 April 2021}}</ref> The central bank has said the economy is managed in an alternative way.<ref name="2021CBSL"/> The country's public and publicly guaranteed debt could rise to 115% in 2021 and poverty could worsen, the World Bank has warned.<ref name="WB2021SL">{{cite news |title=Sri Lanka GDP contracts 4-pct in 2020 amid Coronavirus, import substitution |url=https://economynext.com/sri-lanka-gdp-contracts-3-6-pct-in-2020-amid-coronavirus-import-substitution-79834/ |access-date=11 April 2021 |publisher=[[World Bank]] |date=2 April 2021}}</ref>

Sri Lanka's gross domestic product contracted 4% in 2020 due to the government response to the Coronavirus pandemic which was higher than the previous contraction reported in 2001, on top of several years of slow growth and depreciation of the currency. Sri Lanka was making a strong recovery after lockdowns ended in May 2020 but a new outbreak of Coronavirus slowed exports and industry.<ref>{{cite news|url=https://economynext.com/sri-lanka-2020-gdp-to-shrink-3-9-pct-monetary-policy-for-growth-in-2021-cb-governor-77505/|title= Sri Lanka 2020 GDP to shrink 4-pct, monetary policy for growth in 2021: CB Governor|newspaper=[[EconomyNext]]|access-date=5 January 2021}}</ref> The International Monetary Fund initially projected a 4.6-pct contraction for 2020.<ref>{{cite news|url=https://economynext.com/sri-lanka-gdp-growth-negative-4-6-pct-in-2020-bangladesh-among-fastest-to-grow-imf-74903/|title=Sri Lanka GDP growth negative 5-pct in 2020, Bangladesh among fastest to grow: IMF|newspaper=[[EconomyNext]]|access-date=21 November 2020}}</ref>

In the second quarter of 2020, Sri Lanka's GDP was estimated to have contracted by 16% the biggest quarterly fall on record and expanded by 2% in the third quarter. In the first nine months of the year, GDP was estimated to have contracted 5%.<ref>{{cite news|url=https://economynext.com/sri-lanka-2020-gdp-shrinks-16-3-pct-in-2q-in-covid-19-hit-grows-1-5-pct-in-3q-76931/|title=Sri Lanka 2020 GDP shrinks 16-pct in 2Q in Covid-19 hit, grows 2-pct in 3Q|newspaper=[[EconomyNext]]|access-date=16 December 2020}}</ref>

After growing 5.0% in 2015, growth fell to 4% in 2016, 4% in 2017, 3% in 2018 and 2% in 2019.<ref>{{cite web |url=https://www.cbsl.gov.lk/en/statistics/statistical-tables/real-sector/national-accounts |title= National Accounts - Gross Domestic Product |publisher=[[Central Bank of Sri Lanka]] |website=cbsl.gov.lk |access-date=3 December 2020}}</ref>

The economy suffered a series of shocks in the form of a currency crisis which brought an International Monetary Fund program in 2016, political instability in 2018 combined with a second currency crisis and suicide bombings by an Islamist extremist group on Easter Sunday 2019.<ref>{{cite news|url=https://www.reuters.com/article/us-imf-sri-lanka-idUSKCN0XQ063|title=IMF agrees $1.5 billion bailout for Sri Lanka to avert balance of payments crisis |newspaper=[[Reuters]]|access-date=3 December 2020}}</ref><ref>{{cite news|url=https://www.bloomberg.com/news/articles/2019-04-21/police-say-multiple-explosions-in-sri-lanka-s-capital-colombo|title=Sri Lanka Imposes Curfew After Easter Sunday Bombings Kill 207 |newspaper=[[Bloomberg News|Bloomberg]]|access-date=3 December 2020}}</ref>