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flag Sri Lanka's economy grew 5.4% in Q3 2025, driven by tourism and manufacturing, despite a cyclone’s expected 0.5%–0.7% hit.

flag Sri Lanka's economy grew 5.4% year-on-year in the third quarter of 2025, driven by expansion in tourism, manufacturing, construction, and services, along with increased domestic credit and lower-cost imports. flag The growth follows a 4.9% rise in the previous quarter, indicating ongoing recovery from the 2022 financial crisis. flag However, a late November cyclone is expected to reduce economic activity by 0.5% to 0.7% in 2025, though $2 billion in reconstruction spending may support growth in 2026. flag The IMF projects 2025 growth at 4.5% and 2026 at 3.1%, as Sri Lanka remains under a $2.9 billion IMF program and seeks emergency funding.

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