Sri Lanka, Oct. 13 -- Momentum in Sri Lanka's economic recovery continued in 2025, with real GDP growth remaining robust at 4.8% year-on-year in the first half of 2025, following 5% in 2024. We expect growth to slow to around 4.5% in 2025, as base effects are likely to drive some moderation in the second half of the year, Moody's Ratings periodic review of the ratings of Sri Lanka report issued on Friday (10) said.

Higher social spending will continue to support improvements in consumer sentiment, while investment activity continues to pick up from a low base. At the same time, continued growth in the services sector, led by the steady recovery in tourism arrivals to pre-pandemic levels, will remain a key contributor to GDP growth. We ex...