Central Bank forecasts 0.9% GDP boost despite lifting import restriction
Colombo, May 23 — Sri Lanka is poised to register a current account surplus for the third consecutive year in 2025, with the Central Bank projecting an increase equivalent to 0.9% of GDP. This positive outlook comes even as the country moves to fully relax its import controls.
Speaking at the Central Bank’s monetary policy review on Wednesday, Governor Dr. Nandalal Weerasinghe announced the forecast, citing strong tourism, steady remittance flows, and favourable global petroleum prices as key contributors to the nation’s external stability.
“Despite some decline in global external demand, the positive impact of lower oil prices and strong inflows from tourism and remittances will support another year of surplus,” Dr. Weerasinghe stated.
Sri Lanka recorded a current account surplus of $1.43 billion in 2023 and $1.31 billion in 2024, both years under stringent import regulations. In Q1 of this year alone, the surplus stood at $948 million.
However, the Governor noted a degree of uncertainty regarding exports, pointing to a 90-day observation period amid ongoing global and geopolitical challenges. “We still don’t know how exports will perform—there’s a pause, and we have to wait and see,” he added.
On the import side, banks have opened Letters of Credit amounting to $450 million for motor vehicle imports as of May. Additionally, the Central Bank has made net foreign exchange market purchases totaling $850 million so far this year.
The projections come at a critical juncture for Sri Lanka, as it seeks to stabilize its economy and restore investor confidence following years of fiscal strain.