• Cabinet Co-Spokesman reveals further contraction in economy this year after 8.7% negative growth in 2022

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday said the economy will contract this year too.

Speaking at the post-Cabinet meeting media briefing yesterday, he said the Government expected the economy to contract further this year after shrinking an estimated 8.7% in 2022.

“The economy contracted by over 7% last year and the exact figures will be published once the data of the last quarter are finalised,” he said.

The downward spiral in the third quarter worsened with a contraction of 11.8% on the back of 8.4% negative growth in the preceding three months, the Department of Census and Statistics data showed.

The Cabinet Co-Spokesman said it is impossible to turn around an economy which contracted by over 7% last year to a positive trajectory immediately. Thus, the country’s economy will contract this year as well.

Gunawardena also noted that the Government at present is focused on debt restructuring and once the agreements are reached they will seek more financing to strengthen the economy.

“Till financing agreements are reached, the Government will struggle to find funds to pay salaries of State sector workers as well,” he said.

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