Sri Lanka, April 22 -- Sri Lanka's economic recovery is entering a more fragile phase, with the Central Bank warning that rising geopolitical tensions in the Middle East are beginning to test the resilience built through recent stabilisation efforts, even as domestic conditions remain broadly supportive of growth.

The Central Bank, in its latest macroeconomic outlook released Monday, noted that while the economy has regained a degree of stability following the crisis, the external environment has shifted sharply, injecting fresh uncertainty into the recovery path.

"Sri Lanka's macroeconomic outlook is shaped by improved domestic economic resilience amid an increasingly uncertain global environment," the Central Bank said.

It highlight...