### Trade Policy Shift Vital for Sri Lanka’s Growth Transition 📈

A disciplined transition from economic stabilization to structural growth is essential to avoid "reform fatigue," according to economist Talal Rafi at the Softlogic Stockbrokers Investor Forum 2026. • Macroeconomic Recovery Highlights: Debt-to-GDP reduced from 128% to nearly 100%. Interest payments as a % of revenue dropped from 80% to approximately 50%. Gross financing needs declined from 34% to 20% of GDP. Foreign reserves projected to rise from US$ 6.8 Bn to US$ 8.8 Bn by year-end 2026. • Growth Outlook & Targets: IMF growth projections: 2.9% for 2026 and 3.1% for 2027. Shift required from consumption-led recovery to productivity-driven growth. Resumption of bilateral debt repayments in 2028 will add ~US$ 1 Bn annually to obligations. • Strategic Sector Opportunities: Renewable Energy: Capitalizing on global demand for green power and data centers. Logistics & Shipping: Leveraging strategic maritime routes and integration with Southern India. ICT/BPM: Expanding IT-enabled services and technology adoption. Tourism: Essential for sustained external sector strength and diversification. • Key Risks & Challenges: Potential US$ 700 Mn impact on external balances due to import widening and reconstruction. Risks of fiscal slippage, political cycles, and global commodity volatility. Need for urgent reforms in State-Owned Enterprises (SOEs), labor markets, and land regulation. _Summary based on forum proceedings and provisional economic projections._