Sri Lanka is equipped to absorb sudden economic shocks arising from Cyclone Ditwah and its aftermath, with the Central Bank ready to deploy its full range of macroeconomic stabilisation tools across fiscal, monetary and external sectors, Central Bank Governor Dr. Nandalal Weerasinghe said. Speaking at the ‘2025 Sri Lanka Economic and Investment Summit’ held in Colombo, he noted that the announcement helps ease concerns over the uncertainty surrounding climate-related economic disruptions.
Dr. Weerasinghe emphasised that Sri Lanka is now in a stronger position than during past crises to withstand sudden shocks, with adequate buffers maintained in fiscal, monetary, external sectors and within the banking system. He added that contingency plans had been prepared earlier this year to handle unexpected external pressures, and government accounts for securing both domestic and international support are already active.
Short-term financial relief requirements remain manageable for the government, and the country’s external sector is performing better than before, he said. The Central Bank stands ready to provide liquidity support to the banking system if needed, but no intervention has been required in recent days. Recalling past measures, the Governor highlighted that over Rs. 250 billion was released to the market during the pandemic, and emergency assistance was provided in 2022 to close severe liquidity gaps, preventing systemic instability.
Sri Lanka’s foreign reserves have also strengthened, reaching approximately USD 6.2 billion by the end of October 2025, supported by higher foreign exchange purchases and improvements in the balance of payments. While the country continues to face elevated risks due to climate events and global challenges, safeguarding broad economic stability amid such volatility remains a key institutional priority, Dr. Weerasinghe added.
Leave a Reply