SL recovery no “understatement”, says CB Governor

• CNL Reporter
• April 30, 2025
• Political
• CB Governor
• 0 Comments

Says the nation has much to be proud of, including its ability to weather hard reforms and still move forward
Reiterates that macroeconomic stabilisation remains the anchor of the current policy path
Asserts in the years ahead, Sri Lanka has the opportunity to leverage its economic resilience and unlock its full growth potential

By Shabiya Ali Ahlam

Sri Lanka may still be on the road to recovery, but its steps in correcting long-standing policy failures are now being recognised where it matters most—by key international lenders.

In a bid to spotlight the institution’s role in the country’s turnaround, Central Bank Governor Dr. Nandalal Weerasinghe described the transformation underway as nothing short of remarkable.

“To say that Sri Lanka has undergone a transformative period in recent years would be an ‘understatement’,” he said, in his message issued alongside the Financial Statements and Operations of the Central Bank of Sri Lanka 2024 released yesterday.

Forced by crisis into a period of deep self-examination, Sri Lanka’s efforts, although painful, are now beginning to show results. And at the heart of this turnaround, according to the Governor, is a series of deliberate, overdue moves made to stabilise the economy.

“The measures taken by Central Bank to restore macroeconomic stability through long-overdue reforms, monetary policy measures and micro- and macro-prudential efforts have positioned Sri Lanka on a far stronger footing than would have seemed possible at the outset of the crisis,” he noted.

Looking back at 2024, a year that marked Sri Lanka’s slow but firm emergence from the shadows of a crisis like no other, Dr. Weerasinghe said the nation has much to be proud of, including its ability to weather hard reforms and still move forward.

“Equally important is our own unrelenting commitment as the apex financial sector regulator to stabilising and revitalising the financial system,” he said.

With the storm of 2022 now largely behind, Dr. Weerasinghe maintained that Sri Lanka is steadily rebuilding, having made significant headway in correcting its past. The Central Bank, he added, can be “justifiably proud” of its role in the recovery.

“As the country’s monetary authority operating with a degree of autonomy, we take full ownership of the monetary and financial sector policy measures that we intend to implement in the years ahead to facilitate the nation’s progress towards prosperity,” he emphasised.

What lies ahead, he said, is a Sri Lanka that can, if reform continues uninterrupted, transition to a model of development that is inclusive, equitable, and sustainable.

The Central Bank, now integrating ESG principles across its policy value chain, is doubling down on efforts that reflect long-term thinking and responsible governance.

That said, Dr. Weerasinghe didn’t sugarcoat the challenges. He reiterated that macroeconomic stabilisation remains the anchor of the current policy path, and the push for structural reform must continue with urgency and discipline.

The banking sector, he said, must evolve to become more inclusive, extend deeper support to MSMEs, and fast-track digital financial solutions. Ensuring affordable credit, protecting depositors, and strengthening macroprudential regulation will be critical to maintaining the sector’s resilience.

New plans are also in motion: from financial inclusion drives targeting the underserved, to strengthening digital infrastructure and cybersecurity—measures aimed at modernising the financial ecosystem.

With the Central Bank poised to celebrate its 75th anniversary next year, the message is clear—there’s no room for complacency.

It goes without saying that the progress made in restoring financial discipline and reinforcing economic governance must not only be preserved but further strengthened,” said the Governor.

“In the years ahead, Sri Lanka has the opportunity to leverage its economic resilience and unlock its full growth potential, ensuring economic emancipation for all sections of society,” he added.