Sri Lanka’s economic growth outlook for 2026 remains uncertain due to changing global conditions and external shocks, Central Bank Governor Nandalal Weerasinghe said.

Responding to questions on the country’s expected growth target, the Governor said forecasts had become more difficult following changes in the global economic environment in recent months.

He explained that the impact on growth would depend on the duration of current global uncertainties. If conditions stabilise within a few months, the impact on growth could remain limited, but a prolonged period of disruption could have a greater impact on economic growth.

Speaking on pressure on the Sri Lankan Rupee, Weerasinghe said the main reason was the ongoing Middle East crisis and rising global oil prices, which have increased foreign exchange expenditure.

He noted that several countries dependent on imported fuel had experienced similar currency depreciation trends, citing India, Nepal, Indonesia and Thailand as examples.

The Governor stressed that the current situation was significantly different from Sri Lanka’s 2022 economic crisis, where domestic factors unique to the country had led to a sharp currency collapse.

He also cautioned against interpreting exchange rate depreciation as a sign of economic collapse, noting that other countries too had experienced similar trends.

Weerasinghe further said Sri Lanka is expected to receive around US$ 700 million in IMF-related funding, while nearly US$ 300 million in financing from the World Bank and Asian Development Bank (ADB) is expected in the near future. He said the expected inflows would strengthen foreign reserves and support efforts to maintain economic stability.

The selling price of the US dollar rose further yesterday to Rs. 334, marking the highest recorded selling rate since November 29, 2023. (Newswire)

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