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Sri Lanka's severe austerity from 2021–2024 cut public investment by 72%, stalled recovery, and deepened poverty.
Sri Lanka's austerity measures from 2021 to 2024 are among the most severe in history, according to a World Bank report, with public investment cut by 72% of spending adjustments, harming economic growth and deepening poverty.
The industrial sector contracted by 25% in 2022–2023, real wages remain 14–24% lower, and over a quarter of the population lives below the poverty line.
The economy is not expected to recover to its 2018 GDP level until 2026, and the healthcare system faces shortages due to loss of skilled workers.
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La severa austeridad de Sri Lanka entre 2021 y 2024 redujo la inversión pública en un 72%, detuvo la recuperación y profundizó la pobreza.