P Nandalal Weerasinghe: Central Bank of Sri Lanka's policy agenda for 2026 and beyond
Speech by Dr P Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, Colombo, 8 January 2026.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Ladies and Gentlemen,
As we begin 2026, I extend my warmest wishes for a prosperous New Year that calls for courage to rebuild, with renewed resilience, and unity in advancing reforms.
In 2025, Sri Lanka made notable strides in strengthening macroeconomic stability while advancing policy reforms. Building on the stability regained, real economic activity sustained its momentum during this year.
This was achieved amidst several shocks and uncertainties. Trade policy uncertainties, financial market volatilities, and geopolitical tensions dented the global economic outlook, thereby affecting domestic sentiments during most of 2025. At the same time, the country had to grapple with growing realities of climate vulnerabilities, a fact starkly underscored by Cyclone Ditwah that caused severe devastation in late 2025, in terms of loss of lives and damage to property, while disrupting the livelihoods of many. Our thoughts are with all those impacted by the disaster.
These shocks can transmit rapidly through our economy and test its resilience. This is why building resilience is not a choice, but a necessity. At the core of resilience lies macroeconomic stability. The resilience fostered by stability enables an economy to effectively absorb shocks, adapt to evolving conditions, and recover with confidence.