Sri Lanka’s Recession Worsened Due to High Interest Rates and Inflation

Bloomberg reported that Sri Lanka’s economy likely fell deeper into recession, as tight monetary policy and Asia’s fastest inflation further dampened the nation’s economic health. 

According to a Bloomberg survey of economists, the country’s Gross domestic product probably contracted about 10% between July and September compared to the same period last year.
 

That’s the slowest reading in two years and compares with an 8.4% contraction in the April to June period.

Ankur Shukla of Bloomberg Economics said that demand remained sluggish as high inflation and weak confidence kept consumption under pressure.

Source: Bloomberg