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Sri Lanka on Track to Meet Inflation and Stability Targets in 2026, Says Central Bank Governor

Sri Lanka’s Central Bank Governor Dr. Nandalal Weerasinghe has reaffirmed confidence in the country’s economic recovery, stating that inflation and financial stability targets are well within reach by next year.

Dr. Weerasinghe noted that the Central Bank’s inflation target of 5% is expected to be achieved in 2026, while overall financial stability has markedly improved compared to the crisis years of 2022 and 2023.

“In terms of economic recovery, the economy is continuously growing around 5%. I think that is a healthy economic growth after the crisis happened in 2022 and 2023,” he said.

Addressing concerns over rising inflation, the Governor clarified the difference between short-term price fluctuations and long-term inflation goals, emphasizing that temporary increases do not threaten the overall stability trajectory.

Dr. Weerasinghe also revealed that Sri Lanka is on course to exceed key fiscal targets, including the primary surplus and revenue goals, which will strengthen debt sustainability. Lower-than-expected fiscal deficits, he added, have reduced the government’s borrowing needs — improving debt dynamics and reinforcing a favorable long-term economic outlook.

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