Stabilisation Is Just the Beginning - CBSL Chief

COLOMBO (News 1st); The goal is not only to recover from the crisis and restore macroeconomic stability, but also to lay the foundation for a stronger, more resilient and more inclusive economy going forward, said Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka on Monday (16).

The Governor of the Central Bank of Sri Lanka, speaking at the “Sri Lanka’s Road to Recovery: Debt and Governance” delivered an optimistic update on the country’s economic trajectory, highlighting a significant turnaround following years of crisis.

According to the Governor, Sri Lanka’s economy returned to positive growth in the second half of 2023, breaking a six-quarter streak of contractions. Inflation has dropped to single-digit levels within a year, and the external current account has recorded surpluses for two consecutive years — a first in recent history.

Dr. Weerasinghe also noted progress on the debt restructuring front, with the sovereign debt recirculation process nearing completion. Once bilateral debt restructuring is finalized, it is expected to create much-needed fiscal space.

He praised the reform program’s focus on institutional credibility and governance, stating that “stabilisation is not an end in itself, but a foundation for what must come next.”

While acknowledging the progress made, the Governor cautioned against complacency, citing the unpredictability of external shocks. He stressed the importance of policy consistency, private sector empowerment, and protecting vulnerable communities.

“Sri Lanka has already proven that recovery is possible through sound policies, strong partnerships, and broad-based commitment,” he said. “To sustain this progress, it is imperative that we maintain our momentum and ensure inclusivity, transparency, and accountability in the reform efforts.”