Economic and population growth
Sri Lanka is a lower-middle income country with a GDP per capita of USD 3,852 (2019) and a total population of 21.8 million.
The COVID-19 pandemic has impacted Sri Lanka profoundly, as is the case in many countries. Growth is expected to recover to 3.4 percent in 2021, mainly reflecting a base effect and FDI inflows. Gradually normalizing tourism and other economic activities as well as already signed investments will support growth. However, the subdued global recovery may dampen export demand. Over the medium-term, continued trade restrictions, economic scarring from the slowdown, and the high debt burden may weigh on growth prospects.