No major impact on Sri Lanka’s economic growth due to Cyclone Ditwah - CBSL Governor
January 28, 2026 Adarana
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.
Ditwah impact: Sri Lanka to seek leniency from EU for GSP+
Ditwah impact: Sri Lanka to seek leniency from EU for GSP+
28 Jan 2026 - Daily Mirror
By Kelum Bandara
Given the impact of cyclone Ditwah, which caused US $ 4.1 billion damage, Sri Lanka is to seek redress from the European Union in its evaluation of the country’s eligibility for GSP+ trade facility under the new criterion that will come into effect after 2027, an official said yesterday.
The market in the European Union (EU) currently absorbs more than 24 per cent of the country’s total exports.
Sri Lanka is presently under observation by the EU authorities for the extension of the GSP+ (Generalised Scheme of Preferences Plus) trade facility under the revised criteria to take effect after 2027. As part of the process, Sri Lanka’s overall performance in implementing 27 international conventions that it has already ratified is being evaluated.
In addition to these existing conventions, countries seeking eligibility are now required to ratify and implement several more, including the Paris Agreement on Climate Change, the UN Convention on the Rights of Persons with Disabilities, ILO Convention No. 144 (on tripartite consultations), ILO Convention No. 81 (on labour inspections), the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict, and the United Nations Convention against Transnational Organised Crime.
Sri Lanka is also required to repeal the Prevention of Terrorism Act to qualify for the GSP+ arrangement. Cyclone Ditwah, which struck Sri Lanka in late November, has caused an estimated US$4.1 billion in direct physical damage to buildings and contents, agriculture and critical infrastructure, according to a World Bank Group Global Rapid Post-Disaster Damage Estimation (GRADE) report. This damage is equivalent to about 4 per cent of Sri Lanka’s GDP.
Asked whether Sri Lanka will seek leniency from the EU authorities because of such a loss from the cyclone, an official with knowledge in this regard said such a request would be mad
ஒத்தவை:
சிரேஷ்ட ஊடகவியலாளர் இக்பால் அத்தாஸ் காலமானார்
