Nandalal Weerasinghe says Sri Lanka’s economic growth outlook for 2026 remains uncertain due to changing global conditions and external economic shocks.
Responding to questions regarding the country’s expected growth target, the Central Bank Governor said forecasting had become increasingly difficult following recent changes in the global economic environment.
He explained that the overall impact on Sri Lanka’s growth would largely depend on how long the current global uncertainties continue. According to him, if conditions stabilise within a few months, the impact on economic growth may remain limited, but prolonged instability could create more serious challenges.
Commenting on the recent depreciation of the Sri Lankan Rupee, Weerasinghe said the primary reason was the ongoing Middle East crisis and rising global oil prices, which have increased foreign exchange expenditure.
He noted that several fuel-importing countries, including India, Nepal, Indonesia, and Thailand, have also experienced similar currency depreciation trends.
The Governor stressed that the current situation is very different from Sri Lanka’s 2022 economic crisis, which was driven largely by domestic economic weaknesses and policy failures.
He further cautioned against interpreting exchange rate depreciation as a sign of economic collapse, pointing out that many countries have faced similar pressures under current global conditions.
Weerasinghe also stated that Sri Lanka is expected to receive around US$700 million in IMF-related funding, along with nearly US$300 million in financing from the World Bank and the Asian Development Bank in the near future.
According to him, these expected inflows will help strengthen foreign reserves and support efforts to maintain economic stability.
Meanwhile, the selling price of the US dollar rose to Rs. 334 yesterday, marking the highest recorded selling rate since November 29, 2023.
