Despite the initial shock, the impact of Cyclone Ditwah, which caused widespread devastation in several parts of the country, is unlikely to affect Sri Lanka’s economic growth in 2026, according to Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL).
Dr. Weerasinghe made this assertion based on data collected in December. Speaking at a media briefing in Colombo today (28), he stated that Sri Lanka’s Gross Domestic Product (GDP) growth is projected to be between 4% and 5% in 2026, and it is unlikely that this trajectory will change.
He further explained that inflation is expected to remain around the target of 5% in the coming months. The Governor noted that while the prices of goods increased significantly immediately after Cyclone Ditwah struck, they normalized once supply chains were restored.
Dr. Weerasinghe expressed confidence that the country has overcome the setback and remains optimistic that the economic targets will not require major adjustments.
Additionally, he confirmed that a team from the International Monetary Fund (IMF) has conducted assessments on the cyclone’s impact, with discussions scheduled for upcoming reviews.
