Srilanka, Oct. 19 -- At a news briefing on the Regional Economic Outlook, IMF Asia-Pacific Director Krishna Srinivasan and Deputy Director Thomas Helbling said Sri Lanka's economy grew by five percent last year and is expected to expand by about 4.2 percent in 2025, a sign that stabilisation efforts are yielding results.

Helbling said that the sustained implementation of the IMF-supported program remains crucial, adding that fiscal discipline and reforms of State-Owned Enterprises (SOEs) will be vital for long-term gains.

This solid momentum is confirmed by inflation levels, which, after a year of deflation, have been back in positive territory since August - supported by rising domestic consumption - and are expected to be at around fi...