Sri Lanka is gradually recovering from the economic impact of last year's Easter terror attacks, the media quoting International Monetary Fund (IMF) Deputy Division Chief, Manuela Goretti reported.

Goretti, who led an IMF delegation to Sri Lanka from January 29 to February 7, said in a statement that the country's economic growth is set to rebound from the estimated 2.6 per cent in 2019 to a projected 3.7 per cent in 2020, Xinhua reported.

"The recovery is supported by a solid performance of the manufacturing sector and a rebound in tourism and related services in the second half of the year," Goretti said.

Goretti said that her delegation held constructive discussions with the Sri Lankan government officials regarding recent economic developments and planned reforms.

Welcoming the government's plans to enhance the efficiency and commercial viability of State-Owned Enterprises, Goretti said: "These plans would need to be supported by a visible commitment to strengthen governance and transparency."

The statement by the IMF official noted that Sri Lanka's inflation is projected to remain at the Central Bank of Sri Lanka target of 4.5 per cent.

"The financial system remains broadly stable, although some pockets of vulnerability remain, especially among non-bank financial institutions," Goretti said.

On April 21, 2019, bomb blasts by terrorists targetted a number of hotels and churches across Sri Lanka, killing over 250 people and damaging the country's economy.