General

The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, stated that Cyclone Ditwah, which caused significant damage in various regions, will not have a major effect on Sri Lanka's economic growth in 2026. He shared this information during a media briefing in Colombo on the 28th, relying on data from December. Dr. Weerasinghe projected that the country’s Gross Domestic Product (GDP) growth is expected to be between 4% and 5% in 2026, and he believes this trend will continue. He also mentioned that inflation is likely to remain around the target of 5% in the coming months. Following the cyclone, there was a noticeable rise in the prices of goods, but once supply chains were restored, prices returned to normal levels. Dr. Weerasinghe expressed confidence that Sri Lanka has moved past this challenge and that the economic goals should remain largely unchanged. He noted that a team from the International Monetary Fund (IMF) has evaluated the situation and discussions will take place in future reviews. Additionally, the CBSL has decided to keep the Overnight Policy Rate (OPR) at 7.75% after its recent Monetary Policy Board meeting. This decision was made after considering recent developments and the outlook both domestically and globally.