Sri Lanka's economy was slowly recovering from the impact of the Easter Sunday suicide bombings that killed hundreds and crippled the booming tourism sector, the International Monetary Fund said Saturday.

Growth was likely to hit 3.5 percent next year from this year's forecast of 2.7 percent, the Washington-based lender said, compared to 3.2 percent in 2018. The country estimates it will lose about $1.5 billion in tourism revenue this year as a result of a sharp dip in arrivals following the jihadist attacks on churches and hotels, which killed at least 269 people.

"The authorities are taking actions to mitigate the revenue shortfalls caused by the terrorist attacks and preserve the hard-won gains made under the program," said IMF deputy managing director Mitsuhiro Furusawa in a statement.