Sri Lanka economy slows ahead of presidential elections

Colombo (AFP): Sri Lanka's economic growth slowed, government data showed Sunday, days ahead of the first presidential elections since an unprecedented financial meltdown in 2022.

The economy grew at 4.7 percent year-on-year in the second quarter of this year, compared to an expansion of 5.3 percent in the previous quarter.

However, the April-to-June period performed better than the 3-percent contraction during the same period last year.

Heavy rain in the second quarter of the year adversely affected agriculture, the government's statistics office said.

The latest data came before presidential polls on September 21, the first vote since the country's shortage of foreign exchange led to a record 7.3-percent contraction in 2022.

The peak of the economic crisis saw months of shortages that led to street protests, eventually toppling then-president Gotabaya Rajapaksa.

His successor Ranil Wickremesinghe has doubled taxes, withdrawn generous energy subsidies and raised prices of essentials to shore up state revenue.

Sri Lanka is currently drawing down a four-year $2.9-billion bailout loan from the International Monetary Fund, and is in talks with foreign creditors over a debt restructure.