Sri Lanka announced on Friday that its economy shrank by 3.6 per cent last year. The bank also said that central government’s debt also rose to 101 per cent of GDP last year. International rating agencies have expressed fears for Sri Lanka’s ability to service its huge foreign debt as the country’s foreign reserves fell sharply in the past year. The island’s economy was trying to recover from the effects of the 2019 Easter Sunday bombings that killed 279 people when the pandemic hit in early 2020. Lakshman presented the Annual Report 2020 to PM Mahinda Rajapaksa on Friday (April 30).

Source: The Nation May 01, 2021 06:56 UTC