The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, stated on Monday (16) that Sri Lanka’s path forward must go beyond crisis recovery and macroeconomic stabilisation to build a stronger, more resilient, and inclusive economy.
Delivering a keynote address at the forum titled “Sri Lanka’s Road to Recovery: Debt and Governance”, Dr. Weerasinghe shared a cautiously optimistic outlook, underscoring the country’s economic rebound following a prolonged period of instability.
He highlighted that Sri Lanka returned to positive economic growth in the second half of 2023, ending six consecutive quarters of contraction. Inflation, which had soared during the height of the crisis, has since declined to single-digit levels within a year. Additionally, the external current account recorded surpluses for two consecutive years — a notable achievement in recent economic history.
On the debt restructuring front, the CBSL Governor confirmed that significant progress had been made, with the sovereign debt restructuring process approaching completion. Finalisation of bilateral debt agreements, he said, will open critical fiscal space for the government.
Dr. Weerasinghe also emphasised that the current reform agenda is grounded in strengthening institutional credibility and governance. “Stabilisation is not an end in itself,” he noted, “but a necessary foundation for sustainable and equitable growth.”
However, he cautioned against complacency, pointing to potential external shocks and global economic volatility. He called for policy consistency, increased private sector engagement, and stronger social protections for vulnerable populations.
“Sri Lanka has already demonstrated that recovery is possible through sound economic policies, strategic partnerships, and collective national resolve,” he said. “Maintaining this momentum will require continued transparency, inclusivity, and accountability in our reform efforts.”
