Sri Lanka's economy contracts 8.4% in Q2

The state-run Census and Statistics Department said agriculture shrank by 8.4% in second quarter and industries by 10%, while services shrank by 2.2%, as compared to the same period a year ago. Sri Lanka's central bank estimates the economy to contract by about 8% in 2022.

Sri Lanka's economy contracted 8.4% in the April to June quarter compared with the same period a year ago, data from the government statistics department showed on Thursday, as the country struggles with its worst financial crisis in more than seven decades. A severe dollar shortage, caused by economic mismanagement and impact of the COVID-19 pandemic, has left people in Sri Lanka fighting to pay for essential imports including food, fuel, fertilisers and medicines.

The embattled island of 22 million people saw its growth contract by 1.6% during the first quarter of 2022. The state-run Census and Statistics Department said agriculture shrank by 8.4% in second quarter and industries by 10%, while services shrank by 2.2%, as compared to the same period a year ago.

Sri Lanka's central bank estimates the economy to contract by about 8% in 2022.

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