Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the Coalition Government aims to revise its growth forecast for 2024 to 3.5 percent or more.
During a parliamentary address, he highlighted that key economic indicators are displaying notable positive trends. Prasad noted that private sector lending, adjusted VAT collections—which reflect domestic spending—have risen, alongside a 20 percent increase in government spending over the past seven months. He also cited an increase in imports, higher electricity usage, a boost in vehicle sales, and improvements in PAYE collections and remittances.
He remarked on the enhanced performance of the tourism sector, which has exceeded previous expectations, surpassing record levels from last year. Initially, a growth forecast of about 3 percent in visitor arrivals for this year was anticipated, but data reveals a nearly 7 percent increase in arrivals during the first eight months.
Prasad stated, “We are witnessing record arrivals month after month, and we now expect visitor arrivals to reach just below 1 million in 2024, marking another year of record tourism.”
Additionally, he pointed out a recovery across all major sectors and an increase in investments, promising further growth. The prevailing low-interest rate climate has been beneficial for investments, and efforts are ongoing across government agencies to enhance service quality and facilitate business operations.
However, he acknowledged that the resource sectors are still underperforming and not reaching their full potential.