G-24 Warns of Heightened Global Risks to Sri Lanka’s Recovery 📈

The Intergovernmental Group of Twenty-Four (G-24) has flagged escalating external shocks that threaten to undermine the fragile economic stabilization in developing nations, specifically highlighting Sri Lanka as a vulnerable economy. • Core Global Risks: Geopolitical tensions, particularly in the Middle East, are driving energy price volatility and persistent inflation, complicating the rebuilding of policy buffers. • Impact on Sri Lanka: Despite progress under its IMF-supported reform programme, the nation faces significant headwinds from higher import costs, tighter global financing, and potential disruptions to tourism and remittances. • Debt & Financing: The group emphasized that delays in debt restructuring could derail recovery prospects. They called for faster resolution mechanisms and enhanced access to concessional financing to support nations with limited fiscal space. • Strategic Outlook: For Sri Lanka, navigating this uncertainty requires sustained domestic reforms paired with stronger international cooperation and a more inclusive global financial architecture to mitigate external shocks.