Sri Lanka enters 2026: Cyclone shocks test growth and resilience By Bandula Sirimanna View(s): View(s):Sri Lanka steps into 2026, focusing on economic recovery with forecasts of 5 per cent growth driven partly by post-cyclone reconstruction, leveraging its ports as regional hubs, developing its tech/AI sector, Finance Ministry sources said. The government is optimistic in introducing national strategies and rebuilding tourism with strategic plans for sustainable, purpose-driven travel, while managing challenges like recent cyclone recovery and long-term development goals. By late 2025, a state with a historical peculiarity had been attained by Sri Lanka that of having policy credibility. Central Bank Governor Nandalal Weerasinghe has repeatedly stated that “price stability is a precondition for sustainable growth”, signalling that policy discipline would not be relaxed lightly. His caution reflects growing concern within the government that the fiscal space is thin, capital spending had already been compressed, and Sri Lanka entered the disaster season without a fully funded programme.

Source: Sunday Times December 27, 2025 20:04 UTC