Despite an initially shock, the impact of Cyclone Ditwah which caused widespread devastation to several parts of the country is unlikely to affect Sri Lanka’s economic growth in 2026, the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe has confirmed.

The CBSL Governor made this assertion based on data obtained from the month of December.

Speaking at a media briefing in Colombo today (28), Dr. Nandalal Weerasinghe said Sri Lanka’s Gross Domestic Product (GDP) growth was projected to be between 4 to 5% in 2026 and it is unlikely that the trajectory will deviate going forward.  

He added that they are expecting the inflation to also hover around their target of 5% in the upcoming months.

The Governor noted that the prices of goods saw a marked increase immediately after Cyclone Ditwah hit the country but after the supply chains were restored, the prices also normalized.

Dr. Nandalal Weerasinghe added the country has overcome the setback and they are hopeful the economic targets will not see a major modification.

He also confirmed that the team from the International Monetary Fund (IMF) also conducted assessments on the impact and discussions in this regard will be held at upcoming reviews.

Meanwhile, the Central Bank of Sri Lanka decided to maintain the Overnight Policy Rate (OPR) at 7.75%, following its latest Monetary Policy Board meeting.

The Monetary Policy Board arrived at the decision after considering evolving developments and the outlook on the domestic front and global uncertainties, the CBSL noted.

The Board is of the view that the current monetary policy stance will support steering inflation towards the target of 5%.

Meanwhile, the Monetary Policy Board has stated that it remains prepared to implement appropriate policy measures to ensure that inflation stabilises around the target, while supporting the economy to reach its potential, according to the Central Bank.