Sri Lanka’s Central Bank has cautioned that global market volatility, policy uncertainty, and geopolitical crises could alter the nation’s economic prospects, stressing the urgent need for structural reforms and growth-focused policies.
The Central Bank of Sri Lanka, in its latest Monetary Policy Report, has warned that the country’s economic prospects may undergo significant changes due to rapidly evolving global economic conditions.
According to the report, sudden shifts in world market trends, growing policy uncertainties, and escalating geopolitical tensions could directly affect Sri Lanka’s future economic outlook. The Central Bank emphasized that these global disruptions are likely to create both risks and opportunities for the nation’s financial stability and growth trajectory.
The report highlighted that in order to sustain strong economic growth in the medium term and ensure its benefits are shared equitably across all sectors of society, Sri Lanka must urgently implement structural reforms alongside growth-enhancing policies. Strengthening the domestic economy while adapting to unpredictable global changes was identified as a key priority.
The Central Bank reiterated that without swift and effective policy action, external shocks could derail progress, whereas timely reforms could position Sri Lanka to capitalize on new global opportunities.
