World Bank2024-04-012024-04-012024-04-02https://hdl.handle.net/10986/41338The Sri Lankan economy has shown early signs of stabilization with improved fiscal and external balances, supported by a recovery in remittances and tourism and the continued debt service suspension. However, this will be insufficient to reverse crisis-induced welfare losses as poverty levels remain elevated. The narrow path to restoring growth and prosperity will hinge on a successful debt restructuring, adequate support to the most poor and vulnerable, and continued reform implementation despite upcoming elections.en-USCC BY-NC 3.0 IGOReportWorld Bank10.1596/41338