EconomyPoliticsHOTMonday, May 18, 2026

Central Bank Governor Flags 'Very Uncertain' Future, Cites Global Risks and Fuel Consumption Need

TLDR

Governor Weerasinghe warns of 'very uncertain' future due to global risks.
Sri Lanka's 5% 2026 growth forecast now uncertain due to post-March global instability.
US$700m IMF by May 27th, US$250m by July expected for foreign reserves.

Central Bank Governor Dr. Nandalal Weerasinghe has stated that Sri Lanka's future is "very uncertain" and the nation faces a "risky situation." Speaking before the Parliamentary Committee on Monetary Affairs, he explained that global economic changes since March have made it difficult to accurately forecast economic growth, including a previously projected 5% for 2026. Dr. Weerasinghe also highlighted that Indian Prime Minister Narendra Modi recently advised reducing fuel consumption, a point made despite India's substantial reserves. He warned that continued global instability would further endanger the country.

2 Updates

Update #3\u00b7 May 18 · 5:31 PM

Central Bank Governor Dr. Nandalal Weerasinghe announced that Sri Lanka's foreign reserves are set to receive significant boosts in the coming weeks. Approximately US$700 million is expected by May 27th from the IMF, following the approval of its fourth and fifth tranches. Additionally, around US$250 million is anticipated by July from the Asian Development Bank and the World Bank.

Update #2\u00b7 May 18 · 4:16 PM

Central Bank Governor Dr. Nandalal Weerasinghe has clarified that Sri Lanka's initial 5% economic growth forecast for 2026 is now uncertain due to global economic instability that emerged after March. He also addressed a distorted news report concerning his economic statements, confirming he had requested the relevant newspaper to issue a correction. The Governor further highlighted that the depreciation of the Rupee is a challenge faced by many fuel-importing countries across the region, not solely Sri Lanka.

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