Standard Chartered CEO: Budget 2026 'Credible & Doable' Amidst Fiscal Squeeze 📈

Standard Chartered Bank Sri Lanka CEO Bingumal Thewarathanthri described the 2026 Budget as a "credible and a doable plan," maintaining a "cautiously optimistic" outlook essential for sustaining the IMF program. • Fiscal & Revenue: • Commended the projected 30% YoY revenue growth as ambitious yet realistic. • The 2026 Revenue-to-GDP target (15–15.2%) is achievable, partly due to the expected boost from renewed vehicle imports. • Key Constraint: The country's Interest-to-Revenue ratio is ~57% (among the world's highest). Interest payments (~US$ 2.6 Bn) alone consume over half of the estimated Government revenue (~US$ 4.5 Bn). • Growth & Stability: • Realistic real GDP growth for 2026 is projected between 2–5%, with sustained recovery in tourism and construction needed to hit the higher end. • Inflation is expected to average 3–4% in 2026, aligning with the Central Bank's 5% target. • Meeting these revenue and inflation targets are the key "anchor points" for macroeconomic stability. • Structural Reforms: • Commended structural initiatives such as the PPP Act, the Digital Economy Blueprint (EDP), National Single Window System, and upgrades to port/logistics infrastructure. • These are seen as crucial building blocks for long-term growth, modernising business, and gradually restoring investor confidence to regain market access.</blockquote>