Business & Economy

Business & Economy 1 min read

Emergency Finance and Trade: Shielding Sri Lanka's Export Engine

Cyclone Ditwah threatened Sri Lanka's $12 billion export engine—40% apparel, 15% tea/rubber—but swift multilateral emergency finance preserved vital foreign exchange and 2 million jobs. ADB's $40 million trade guarantees enabled 500 exporters to secure working capital despite $200 million cyclone d...

Dec 24, 2025 40

Business & Economy 2 min read

From Stability to Growth: Is Sri Lanka Back on Global Investors' Radar?

International investor sentiment toward Sri Lanka has warmed significantly, with foreign direct investment (FDI) surging 15% to $507 million in January-October 2025, signaling confidence in post-crisis stability and President Dissanayake's reform trajectory. Apparel captured 40% ($200M) via Indian/...

Dec 24, 2025 40

Business & Economy 1 min read

Sri Lanka's Recovery "Still Incomplete": What That Means for Ordinary People

The World Bank characterizes Sri Lanka's post-crisis trajectory as "strong but incomplete," with poverty rates 10% above 2019 levels and 25% of households grappling with food insecurity despite 5.4% Q3 growth. Macro indicators shine—reserves $5.2B, inflation 5.8%, debt stabilizing—but micro-level s...

Dec 24, 2025 39

Business & Economy 3 min read

Cyclone Ditwah's $2B Damage to Sri Lanka: Economic Toll and Recovery Path

Cyclone Ditwah struck in early December 2025 with devastating force, inflicting an estimated $2 billion in damages across Sri Lanka's Eastern and Northern Provinces, contracting GDP growth by 0.5-0.7% and displacing over 500,000 people from their homes. The storm's torrential rains flooded 150,000...

Dec 24, 2025 34

Business & Economy 3 min read

Sri Lanka Budget 2026: 16% Revenue Target to Slash Debt – Family Impacts

President Anura Kumara Dissanayake unveiled Budget 2026 with an ambitious projection of government revenue reaching 16% of GDP, equivalent to Rs3.2 trillion, a significant leap from 14.5% in 2024 and a cornerstone for reducing public debt below 97% of GDP. This fiscal roadmap, presented amid 5.4% q...

Dec 24, 2025 38

Business & Economy 4 min read

Sri Lanka's 5.4% Growth: Recovery or Mirage?

Sri Lanka's economy surged 5.4% year-on-year in the third quarter of 2025, delivering its most vigorous expansion since the devastating 2022 financial crisis that triggered sovereign default and widespread hardship. According to the Department of Census and Statistics, this impressive growth was pr...

Dec 24, 2025 24

Business & Economy 1 min read

Cyclone Ditwah's Toll on Tourism and Exports: Recovery Timelines

The tourism and export sectors are facing a challenging Q1 2026 following the devastation of Cyclone Ditwah. While major resort chains in the south remained largely intact, coastal SMEs and agricultural exports suffered significant disruptions. The Sri Lanka Tourism Development Authority (SLTDA) ha...

Dec 23, 2025 27

Business & Economy 1 min read

Economic Resilience Amid Geopolitical Shifts: Double FDI Inflows Analyzed

Sri Lanka has recorded a remarkable doubling of Foreign Direct Investment (FDI) inflows in 2025, a surge attributed to the island's strategic positioning amid shifting global power dynamics. With major trade routes becoming increasingly contested, investors from both the East and West are viewing S...

Dec 23, 2025 22

Business & Economy 1 min read

Govt Refinances Rs. 25M Business Loans at 2-3% to Aid SMEs

In a major relief measure for Small and Medium Enterprises (SMEs) battered by the recent cyclone, the Ministry of Finance has announced a refinancing scheme for business loans up to Rs. 25 million. Eligible businesses can now restructure their debt at concessionary interest rates of 2-3%, significa...

Dec 22, 2025 28

Business & Economy 1 min read

IMF Approves $206M Emergency Aid to Stabilize Post-Cyclone Recovery

The International Monetary Fund (IMF) has approved an immediate disbursement of $206 million in emergency financial assistance to Sri Lanka. This critical funding aims to stabilize the island's balance of payments following the devastating impact of Cyclone Ditwah earlier this month. IMF mission...

Dec 22, 2025 22