Sri Lanka's economy is shrinking, but the World Bank says it will grow again next year

Sri Lanka's economy shrank by 2.3% in 2023, a smaller contraction than expected. The World Bank predicts the economy will grow by 2.5% in 2024, driven by a recovery in tourism and remittances.

The country is still dealing with high debt and inflation, but the immediate crisis seems to be over. This means the government can now focus on longer-term reforms rather than just putting out fires. The question is whether those reforms will actually happen.