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Sri Lanka's economic outlook remains weak amid Middle East crisis: Dr ...
Sri Lanka's economy, which has been very badly hit by the Middle East crisis as well other external shocks such as climate change, is not expected to have a very promising future, noted former ...
Sri Lanka Latest Breaking News and Headlines - Daily Mirror
Says Sri Lanka’s macroeconomic outlook is shaped by improved domestic economic resilience amid an increasingly uncertain global environment Highlights escalating geopolitical tensions, higher energy costs and supply chain disruptions as key risks weighing on the outlook Cautions the global backdrop has deteriorated faster than anticipated, with the Middle East conflict emerging as a critical swing factor Implies current buffers does not essentially offer immunity Despite emerging risks, CBSL maintains that the broader recovery trajectory remains intact By Shabiya Ali Ahlam Sri Lanka’s economic recovery is entering a more fragile phase, with the Central Bank warning that rising geopolitical tensions in the Middle East are beginning to test the resilience built through recent stabilisation efforts, even as domestic conditions remain broadly supportive of growth. The Central Bank, in its latest macroeconomic outlook released Monday, noted that while the economy has regained a degree of stability following the crisis, the external environment has shifted sharply, injecting fresh uncertainty into the recovery path. “Sri Lanka’s macroeconomic outlook is shaped by improved domestic economic resilience amid an increasingly uncertain global environment,” the Central Bank said. It highlighted escalating geopolitical tensions, higher energy costs and supply chain disruptions as key risks weighing on the outlook. The assessment reflects a growing divergence between domestic gains and external vulnerabilities. Inflation remains low for now and financial conditions have eased, supporting credit growth and consumption, while fiscal consolidation and ongoing reforms under the IMF programme continue to anchor policy credibility. However, the Central Bank cautioned that the global backdrop has deteriorated faster than anticipated, with the Middle East conflict emerging as a critical swing factor. “These developments are expected to weigh on growth and exert upward pressure on inflation across countries around the world, driven by higher energy and shipping costs, supply chain disruptions, and increased volatility in financial markets,” the Central Bank stressed. Sri Lanka’s recovery has been underpinned by a steady rebuilding of buffers across the external, fiscal and financial sectors. The accumulation of foreign exchange reserves, sustained current account surpluses and the completion of debt restructuring have strengthened the country’s ability to absorb shocks. ...
External shocks to slow Sri Lanka's economic growth in ... - Adaderana
Sri Lanka's economic growth rate in 2026 is projected to be lower than the growth recorded in 2025, according to Professor in Economics at the Department of Economics, Priyanga Dunusinghe of the University of Colombo.
SRI LANKA ECONOMIC CRISIS - The Economic Times
Sri Lanka's tourist arrivals saw a significant drop in March, falling to 183,979 from over 277,000 in January and February. This decline is largely attributed to the ongoing conflict in the Middle East disrupting transit hubs and travel plans.
