Sri Lanka's Recovery Remained Resilient in 2025, But the Middle East Conflict Clouds Outlook
Sri Lanka, April 10 -- Sri Lanka's economic growth is expected to moderate to 4.0% in 2026 and climb to 4.2% in 2027, following two consecutive years of strong 5.0% growth.This forecast is based on an early stabilization scenario for the Middle East conflict, according to the Asian Development Outlook (ADO) April 2026, Asian Development Bank's (ADB) flagship economic publication. Sri Lanka's recovery held firm in 2025 despite the late-year disruption of Cyclone Ditwah. Private consumption surged amid low inflation and easing interest rates, while remittances hit a record high, as did the primary budget surplus. The current account posted a third consecutive surplus, and official reserves climbed to their strongest level in years.The outlook...
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