Sri Lanka targets 4–5% GDP growth in medium to long-term: CBSL Governor

Sri Lanka is striving to achieve 4–5% GDP growth in the medium to long-term in comparison to the baseline requirement of 3% set by the International Monetary Board (IMF) to achieve debt sustainability, Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe has stated.

The Central Bank Governor noted that Sri Lanka has been consistently over performed through structural reforms since the economic crisis in 2022.

During an interview with CNBC, Governor Dr. Nandalal Weerasinghe said although the IMF has set a debt sustainability target in 2032, he is seeking to achieve the target much earlier.

The Central Bank Governor said Sri Lanka’s economy is on track for recovery, with rates held at 7.7% and a healthy policy buffer in place.

The Governor also highlighted reforms that are now shifting from crisis stabilization to driving 4–5% growth, adding they are aiming for faster debt sustainability and a full return to pre-crisis levels within a few years.

Dr. Weerasinghe also noted that there is less uncertainty now as U.S. tariffs on Sri Lanka have eased to 20% from an initial 44% announced.

Considering the tariff rates imposed on fellow competitors, the Governor is of the view that the impact on Sri Lankan businesses is much lesser than initially anticipated.