In an interview with Bloomberg on 7 March 2026, Governor Dr. P. Nandalal Weerasinghe shared insights on Sri Lanka’s preparedness to navigate potential global economic shocks.

He highlighted that Sri Lanka currently has sufficient policy buffers, including stronger foreign reserves and a flexible policy framework, to absorb external pressures. With inflation currently around 1.6%, well below the 5% target, there is space to accommodate potential price shocks arising from global uncertainties.

He also noted that Sri Lanka will face global economic challenges like any other country, but the economy is better positioned today due to improved macroeconomic fundamentals and further explained that cost-reflective pricing mechanisms, flexible inflation targeting and exchange rate flexibility will help the economy adjust to external shocks.

Addressing the ongoing global conflicts, he explained that any significant external shocks may require discussions with the IMF, while expressing hope that geopolitical tensions would ease in the near future.