Sri Lanka, Oct. 9 -- Confidence in the Sri Lankan financial system increased over both short and medium-term horizons during the second half of 2026, according to the Central Bank's Systemic Risk Survey.

The findings indicate improved overall sentiment regarding the stability of the country's financial framework.

Survey participants identified global macroeconomic risks as the primary threat to financial stability, with concern growing compared to the prior survey period.

Heightened anxiety stems mainly from escalating geopolitical tensions, foreign economic spillovers, and persistent global market uncertainty.

Despite the positive outlook, respondents noted a slight rise in the likelihood of a high-impact negative event in the short ...