Sri Lanka’s economy to grow 3.5% in 2025 despite US tariff headwinds, World Bank says

COLOMBO (Reuters) – Sri Lanka is on track to post growth of 3.5% this year, the World Bank said in its latest report on Wednesday, unchanged from its October forecast, but faces challenges from hefty U.S. tariffs and high poverty rates.

The island nation posted growth of 5% last year, rebounding from a far-reaching financial crisis sparked by a record dollar shortfall three years ago with support from a $2.9 billion International Monetary Fund (IMF) programme.

But the government is worried that tariffs of 44% imposed by U.S. President Donald Trump’s administration, which will affect about $3 billion of its exports, could hurt its economic recovery. It wants to engage with the U.S. to strengthen trade relations…| read more on Investing.com