Economic indicators suggest tentative stability, though challenges remain for long-term growth.

Sri Lanka’s economy has shown cautious signs of stabilisation, according to recent assessments by policymakers and analysts. Improved fiscal discipline, controlled inflation, and gradual recovery in tourism have contributed to a more stable outlook.

However, economists warn that recovery remains fragile. High debt levels, cost-of-living pressures, and external vulnerabilities continue to pose risks. Structural reforms, including tax policy and state-owned enterprise restructuring, are viewed as essential for sustainable growth.

While short-term indicators offer some optimism, long-term recovery will depend on consistent policy implementation and renewed investor confidence.