Sri Lanka's economy is expected to perform better than previously expected but still see a significant contraction in 2023 before growing in 2024, World Bank projections for the crisis-hit nation showed on Tuesday.

"Sri Lanka is showing signs of recovery after a severe recession and the economy is expected to grow by 1.7 percent in 2024, after contracting by 3.8 percent in 2023," the World Bank said in a statement. (Reporting by Uditha Jayasinghe; Writing by Swati Bhat; editing by Sudipto Ganguly and Edwina Gibbs)