Sri Lanka, Oct. 12 -- Sri Lanka's financial system remained stable during the first half of 2026 despite multiple economic shocks and growing global uncertainties, according to the Central Bank of Sri Lanka's Financial Stability Review for 2026.Read Travel Guides

The report attributed the stability to the continued economic recovery, adequate capital and liquidity buffers across banks and finance companies, and improved fiscal performance.

However, the Central Bank warned that heightened geopolitical tensions, rising global inflation, elevated energy and commodity prices, tighter global financial conditions, trade fragmentation and climate-related risks could affect the domestic economy.

Sri Lanka remains particularly vulnerable to ext...