Retail sector emerges key contributor to recovery, adding 14% to GDP
Sri Lanka’s economy, which faced significant challenges in recent years due to the COVID-19 pandemic, is showing signs of recovery. In 2022, the country’s GDP contracted by 7.3%, and inflation peaked at 46.4%. However, by 2024, Sri Lanka is expected to record a modest growth of 1.9%, with further growth of 2.5% projected for 2025. This was revealed by Sri Lanka Retailers Association(SLRA) Chairman Charitha Subasinghe.
He made these observations at the inauguration of the 21st Asia Pacific Retailers’ Convention and Exhibition which took place at Shangri-La Colombo recently. The three-day event was held from September 4 to 6. The event was organized by SLRA in collaboration with Federation of Asia Pacific Retailers Associations'(FAPRA). It also included a knowledge forum, exhibition and B2B network session at BMICH. This event brought top leaders and innovators in the retail industry.
With the theme “Redefining Retail in APAC: From Transactions to Transformation,” this conference promised to be a forum where innovative ideas, industry insights, and transformative strategies converged to shape the future of retail in the Asia-Pacific region. This will lead the way forward for all retailers, especially in Sri Lanka, to address key challenges, as this gathering promises to bring distinguished speakers, decision makers, and industry experts on to one stage.
It was also revealed that the inflation has dropped sharply, reaching just 0.5% in August 2024. Foreign reserves have also improved, allowing the resumption of international trade, with the only exception being vehicle imports, which are expected to resume soon.
Speaking further, the SLRA Chairman also emphasized Sri Lanka’s retail sector has emerged as a key contributor to the recovery, contributing 14% of the nation’s GDP. The sector is supported by significant investments in infrastructure, talent development, and supply chains, attracting international brands and expanding e-commerce. The country’s tourism industry, forecasted to attract over two million visitors in 2024, also plays a vital role in boosting retail activity.
In addition, Sri Lanka’s manufacturing sector remains strong, with exports of key products like Ceylon tea, spices, and clothing gaining prominence in international markets. The country is focused on fostering international trade partnerships to further support its economic recovery.
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