Sri Lankan economy contracts 1.6% in Q1 as financial crisis deepens

Sri Lanka's economy contracted by 1.6% in the January-to-March quarter as the island nation was crippled by the fallout of its worst financial crisis in decades, data released by the statistics department on Tuesday showed.

The state-run Census and Statistics Department said the contraction was largely driven by inflation, currency devaluation and low foreign exchange reserves.

Sri Lanka's economy had expanded by 4.3% in the same quarter a year ago and saw full-year growth clock in at 3.5% in 2021.

Also Read: Tycoon appointed crisis-hit Sri Lanka's minister for investment promotion