CBSL Governor Reassures Investors on Debt & Growth Outlook 📈

The Sri Lanka–Germany Business Council recently hosted CBSL Governor Dr. Nandalal Weerasinghe to discuss the nation’s 2026 economic trajectory. The Governor emphasized that stabilization is on track, supported by a low-interest-rate environment conducive to private sector investment. • Macroeconomic Outlook The economy is projected to maintain growth (estimated at 4-5% for 2026) with inflation anchored at mid-single-digit levels (approx. 5% target by H2 2026). The Governor dismissed concerns over external debt repayments starting in 2028, citing established fiscal buffers. • Sectoral & External Performance External Inflows: Increased remittances from skilled migrants and a rise in recorded earnings from freelancers have boosted reserves. Aviation: Progress in SriLankan Airlines' debt restructuring is expected to improve the national sovereign credit profile. ICT/BPM & Services: Highlighted as key growth areas, with a focus on high-end, technology-driven exports to remain globally competitive. • Program Updates & Risks The IMF-supported program remains on track despite a slight delay in the fifth review due to post-program assessments. Global risks identified include geopolitical tensions and potential disruptions from Artificial Intelligence (AI). • Key Highlights Inflation: Stabilized at 2.3% (Jan 2026). Reserves: Surpassed US$ 6.8 Bn by end-2025; targeting US$ 10 Bn in the medium term. Monetary Policy: Accommodative stance maintained to support business planning.