World Bank in its twice-a-year-regional update expects the South Asian economies including Sri Lanka to slump sharper than expected this year into its worst-ever recession as the devastating impacts of COVID-19 on the region’s economies.

As the pandemic linger on taking a disproportionate toll on informal workers and pushing millions of South Asians into extreme poverty, the latest South Asia Economic Focus “Beaten or Broken?” released Thursday (Oct 08) forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 percent in 2020, after topping 6 percent annually in the past five years.

In its outlook, Sri Lanka’s economy is expected to contract by 6.7 percent in 2020, with all key drivers of demand affected: exports, private consumption and investment.

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