Sri Lanka, July 10 -- The Asian Development Bank (ADB) has lowered Sri Lanka's economic growth forecast for 2027 and sharply raised its inflation projections, warning that prolonged disruptions to global energy markets are likely to weigh on the country's recovery over the medium term.

In its July 2026 Asian Development Outlook update, the Manila-based lender maintained Sri Lanka's growth forecast for 2026 at 4.0 percent but cut the 2027 projection to 4.0 percent from the 4.2 percent forecast issued in April.

The downgrade comes as the ADB reduced its overall growth forecast for developing Asia and the Pacific to 4.9 percent from 5.1 percent projected in April, citing the economic fallout from the Middle East conflict, including higher...