Sri Lanka, Oct. 13 -- Sri Lanka's financial system remained stable during the first half of 2026, supported by economic recovery, improved fiscal performance and adequate capital and liquidity buffers, although rising household borrowing and external uncertainties pose emerging risks, the Central Bank of Sri Lanka (CBSL) said.Read Travel Guides

In its Financial Stability Review 2026, released yesterday, the Central Bank highlighted rapid growth in vehicle financing and gold-backed lending, rising household indebtedness and increasing property prices as potential sources of financial vulnerabilities.

The report noted that intensifying geopolitical tensions, elevated energy prices, global inflationary pressures and tighter international f...