LNP - Asian Development Bank lowers Sri Lanka’s GDP growth estimate for FY2025

The Asian Development Bank (ADB) has revised downward its GDP growth forecast for Sri Lanka, primarily due to the effects of US tariff policies. The revised forecast, detailed in the ADB’s Asian Development Outlook (ADO) July 2025 report, comes as Sri Lanka’s economy is facing times of uncertainty over the proposed reciprocal tariffs by US President Donald Trump. The ADB has revised the growth outlook for South Asia for 2025 from 6.0% in the April 2025 ADO to 5.9%. It noted, “the slight downward revisions for GDP growth in India and Sri Lanka in 2025 are primarily due to the effects of US tariff policies.