On Tuesday, the Asian Development Bank (ADB) said it launched a new country partnership strategy for Sri Lanka from 2024 to 2028.

According to the ADB, the focus is on restoring the country’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience.

The ADB said Sri Lanka showed signs of stability and recovery from a deep economic crisis.

Data showed that Sri Lanka’s inflation significantly declined from 69.8 per cent to 4.0 per cent between September 2022 and December 2023.

Foreign exchange reserves increased to $4.4 billion in 2023 from $1.9 billion in 2022.

“Sri Lanka’s economic growth returned to positive territory in the second half of 2023, and that momentum is likely to continue,” the ADB said.

It said its assistance under the new CPS for Sri Lanka would strengthen public financial management and governance, foster private sector development, promote green growth and improve access to climate-smart public services.

The new CPS supported the South Asian country’s efforts to tackle the key underlying causes of the crisis, including reforming the public financial management system and strengthening governance.

It also accelerated domestic resource mobilisation and improved fiscal and debt sustainability, as well as measures to improve the performance of state-owned enterprises.

(Xinhua/NAN)