Sri Lanka is aiming at a medium-to-long-term GDP growth of 4–5%, surpassing the baseline 3% requirement set by the International Monetary Fund (IMF) for achieving debt sustainability, Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe has said.
Dr. Weerasinghe has emphasised that Sri Lanka has ` consistently outperformed expectations through structural reforms implemented since the economic crisis of 2022. Speaking to, the US-based news channel, CNBC, the Governor outlined the country’s ambitious plans to reach the
IMF’s debt sustainability target well ahead of the 2032 deadline.
“The economic recovery is on track,” Dr. Weerasinghe said, highlighting the current 7.7% policy interest rate and the robust policy buffer in place. “Our focus has now shifted from crisis stabilisation to achieving 4-5% growth, and we are committed to accelerating our debt sustainability efforts, aiming for a full recovery to pre-crisis levels within the next few years.”
He also pointed out that uncertainty in the international trade environment had decreased, as US tariffs on Sri Lankan exports had been reduced to 20%, down from the initial 44% imposed during the peak of the crisis.Given the tariff rates imposed on Sri Lanka’s competitors, the Governor said he believed the impact on Sri Lankan businesses had been far less severe than initially expected.