Sri Lanka Economy Expands 4.7% Ahead of Presidential Vote
(Bloomberg) -- Sri Lanka’s economy grew faster than expected in the second quarter, bolstering sentiment ahead of a crucial election that could affect policy as the country recovers from its worst crisis in decades.
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Gross domestic product rose 4.7% in the three months to June from a year ago, the Statistics Department said Friday. That compares with a forecast of 4.3% in a Bloomberg survey of economists and a print of 5.3% in the January-March period.
The island nation will hold a presidential election on Sept. 21, the first poll since an unprecedented crisis led to the ouster of the strongman leader Gotabaya Rajapaksa. Incumbent Ranil Wickremesinghe, who was voted into power by parliament, secured a $3 billion bailout from the International Monetary Fund to finance the nation’s recovery from a default-induced slump, but higher taxes and utility bills have made him deeply unpopular.
The vote has become a battleground between the political elite and the leader of a leftist outfit once notorious for armed rebellions. To bolster growth further, Sri Lanka’s new leader will have to complete restructuring debt and follow through on IMF-mandated reforms to keep the funds flowing.
READ: Sri Lanka Election Puts IMF Bailout Deal in Spotlight: QuickTake
READ: Sri Lanka Second Quarter GDP Expands 4.7% Y/y; Est. +4.3%
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