COLOMBO, March 18, 2026 (AFP) - Sri Lanka's economy expanded 4.8 percent in the final quarter of 2025, slowing sharply after a devastating cyclone that killed 641 people, official data showed Wednesday. Cyclone Ditwah, which struck in late November, caused an estimated $4.1 billion in damage, according to the World Bank -- the worst natural disaster to hit the island since the 2004 Asian tsunami. However, the World Bank warned late last year that Sri Lanka's recovery remained "uneven and incomplete", with many households yet to regain livelihoods lost during the 2022 crisis. The World Bank had forecast Sri Lanka's economy to grow 4.6 percent last year, but the country performed slightly better according to the statistics department's figure. Sri Lanka's economy suffered its worst recession in 2022, contracting 7.3 percent, when then-president Gotabaya Rajapaksa was forced to resign following months of street protests.

Source: Bangladesh Sangbad Sangstha March 18, 2026 11:05 UTC