Lanka economy to grow by around 4%-5% in 2026

Sri Lanka’s economy is likely to grow by around 4% to ​5% in 2026, the country’s central bank chief said, a forecast in line with the government’s projection.

There could be both downside and ‌upside risks ‌depending on how ‌quickly ⁠reforms ​are ‌implemented, Central Bank of Sri Lanka (CBSL) chief Nandalal Weerasinghe said during a speech to unveil the bank’s 2026 agenda and policies.

A government minister told Reuters in December that the economy was expected to expand by more than % in 2026, significantly above the International Monetary Fund’s estimate of 3.1%.

The island nation’s economic ​recovery was hit by Cyclone Ditwah, which killed nearly ⁠650 people as it swept through the island in November. Nearly 10% of Sri Lanka’s 22 million people were affected.

The cyclone caused major damage to infrastructure, farms, and tea estates, with rebuilding costs estimated at ‌up to $7 billion.