CBSL Governor Signals Rapid Recovery, Sri Lanka’s Economy to Maintain Near 5% Growth

COLOMBO (News1st); Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe says that Sri Lanka’s economy is rapidly recovering and is now approaching the levels recorded before the 2022 economic crisis.

The Governor highlighted that Sri Lanka’s economy has recorded growth for the third consecutive year since the economic crisis. 

He added that growth is expected to remain around 4–5% this year, although the impact of the Middle East crisis could weigh on the economy during the second half.

The Governor said ongoing economic reforms are expected to expand the country’s productive capacity and strengthen its resilience. 

Dr. Weerasinghe added that ongoing structural reforms are steadily expanding economic capacity, while proactive Central Bank monetary policies are projected to bring inflation back down to the target 5% rate by the first half of 2027.

He further stated that the country’s external finances are stabilizing as the current account shifts back into a surplus during the year's second half with strong backing from bilateral, multilateral, and commercial lenders.

On debt restructuring, the Governor said Sri Lanka has restructured its debt-service obligations for the next 10 years, with support from international, bilateral and commercial partners.

He assured that the country will be able to meet its domestic and external debt obligations during this period under the restructured arrangements.

He further noted that Sri Lanka’s per capita income and overall economic size have recovered to levels close to those recorded before the crisis, describing the country’s recovery as rapid, stable and resilient.

He said Sri Lanka is now being viewed internationally as an example of a country that has achieved a relatively fast recovery from a severe balance-of-payments and debt crisis.

The governor made these remarks at a special meeting of senior government officials and diplomats organized by the Ministry of Foreign Affairs.