Description
Table of Contents
* Major Economic Developments in 2025
Key Policy Actions, IMF Reviews, Budget Developments and External Shocks
* Sri Lankan Economy: Key Macro-economic Indicators
GDP, Inflation, Employment, External Sector, Fiscal Position and Financial Markets
* What Happened to the Economy in 2025?
Post-Crisis Recovery Trends and the Impact of Cyclone Ditwah
* Economic Growth Performance (2018–2025)
Historical Growth Trends and Structural Constraints
* Outlook for 2026: What’s Next?
Growth Scenarios and Key Risks
* Inflation and Monetary Policy
Inflation Trends, Policy Stance and Outlook for 2026
* Fiscal Sector Performance
Government Revenue, Expenditure, Interest Costs and Fiscal Deficit Outlook
* Public Debt and Borrowing Dynamics
Debt Sustainability, Interest Burden and Financing Risks
* Interest Rates and Credit Conditions
Treasury Yields, Lending Rates and Financial Sector Stability
* Foreign Holdings of Government Securities
Portfolio Flows, Risks and Sustainability
* Balance of Payments and External Sector
Trade, Services, Remittances and Overall BOP Outlook
* Foreign Direct Investment (FDI)
Trends, Constraints and Strategic Priorities
* Exchange Rate Developments
LKR Performance, Pressures and Forecast for 2026
* Foreign Reserves Position
Reserve Adequacy, Composition and Risks
* Worker Remittances
Middle East Dependence and 2026 Outlook
* Capital Markets: Colombo Stock Exchange
Market Performance, Valuation and Investor Sentiment
* Commodity Prices and Trade Impact
Oil, Tea and Global Price Movements
* Strategic Recommendations – “To-Do” List for 2026
Risk Management, Investment Strategy and Operational Guidance








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