Posted by ONLANKA Newsroom on Might 18, 2026 – 7:50 pm
The Central Financial institution of Sri Lanka (CBSL) says Sri Lanka’s economic system recorded 5% progress in 2025, and that agriculture, trade, and companies all expanded in the course of the 12 months.
CBSL officers made these remarks when presenting the CBSL 2025 Annual Financial Assessment to the Committee on Public Finance (CoPF) at Parliament.
The CoPF is chaired by MP Dr. Harsha de Silva. Nevertheless, as he had knowledgeable the committee that he wouldn’t be current, the assembly was held below the chairmanship of MP Lawyer-at-Legislation Rauff Hakeem. The assembly was attended by Deputy Minister Nishantha Jayaweera, Dr. Kaushalya Ariyarathne, and MPs Ravi Karunanayake, Harshana Rajakaruna, Wijesiri Basnayake, and Nimal Palihena. At this assembly, CBSL introduced the 2025 Annual Financial Assessment.
In accordance with the evaluation, inflation turned optimistic from August 2025, primarily resulting from worth will increase within the non-food class.
CBSL additionally reported progress in public funds. Authorities income elevated to 16.6% of GDP. The first account surplus was 5.4% of GDP, whereas the general funds deficit fell to 2.3% of GDP. Central authorities debt declined to 91.6% of GDP.
CBSL officers stated employee remittances reached a report US$ 8.1 billion, whereas tourism earnings had been US$ 3.2 billion. They added that the commerce deficit widened, as import expenditure elevated following the removing of restrictions on car imports.
On overseas change and reserves, CBSL officers stated the Sri Lankan rupee depreciated by 5.6% in opposition to the US greenback in 2025, whereas gross official reserves rose to US$ 6.8 billion by year-end.
CBSL acknowledged that resulting from its accommodative (free) financial coverage, market rates of interest declined, and credit score to the non-public sector recorded 25.2% progress, which officers described as a report.
The evaluation additionally famous enhancements within the labour market as financial exercise returned to regular. The unemployment fee fell to three.9%, whereas labour pressure participation elevated to 49.4%.
Wanting forward, the evaluation warned that new financial challenges might emerge in 2026 because of the warfare state of affairs within the Center East and local weather change. Though there had been a stability of funds surplus for about three years, CBSL officers advised the committee there’s a tendency for it to show right into a deficit this 12 months.
Throughout the dialogue, the committee drew CBSL’s consideration to the significance of implementing particular mechanisms comparable to a “Dangerous Financial institution” idea to handle non-performing loans in state banks, and to the impression of the excessive rate of interest unfold on financial progress.
CBSL officers additionally advised the committee that the federal government has launched a important consolidation plan to merge small banks and finance firms, with the purpose of constructing a technologically and financially sturdy institutional system. The committee burdened the necessity to defend small-scale entrepreneurs by way of these reforms and to make sure the soundness of the monetary system.
The committee additionally mentioned strategic actions taken by CBSL to take care of official reserves at an optimum stage whereas stopping a pointy depreciation of the Sri Lankan rupee.
The assembly was attended by senior CBSL officers, together with Governor Dr. Nandalal Weerasinghe.
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