The Central Bank of Sri Lanka (CBSL) released its comprehensive third-quarter monetary assessment and economic trajectory report at its Colombo headquarters today, October 2, 2026, confirming that the national economy expanded by 4.2% year-on-year during the second quarter of 2026.

According to official national accounts data, economic recovery was anchored by sustained rebounds across the industrial manufacturing and export services sectors, alongside steady tourist arrivals and strong inward remittance flows exceeding USD 540 million monthly. Foreign currency markets reflected stable macroeconomic fundamentals, with the Sri Lankan Rupee trading within a narrow, orderly band of 330.65 to 330.70 against the US Dollar in interbank spot transactions throughout morning trading sessions.

Central Bank Governor Dr. Nandalal Weerasinghe addressed the media, noting that while headline inflation hovered around 8% due to imported crude oil overheads and seasonal supply fluctuations, core inflation metrics remained well-anchored within the target single-digit policy corridor. The Governor highlighted that official gross international reserves had climbed past USD 6.2 billion, providing a robust import cover of approximately 3.8 months of essential goods and shielding the domestic currency from speculative capital outflows.

However, economic analysts and retail trade federations noted that persistent cost-of-living overheads continue to weigh on everyday household purchasing power. To address these vulnerabilities, the Central Bank underscored the government's newly initiated 'Decent Work Country Programme' (2026–2032) in collaboration with the International Labour Organization (ILO), aimed at enhancing formal social safety nets, formalizing wages in small enterprises, and driving targeted productivity growth in regional cottage industries.