The Sri Lanka Risk Survey shows improved short-term confidence in the financial system, but medium-term sentiment has declined, according to the Central Bank’s latest report.
Sri Lanka Risk Survey finds stronger short-term confidence but weaker medium-term outlook
The Central Bank’s Sri Lanka Risk Survey for the second half of 2025 highlights contrasting signals for financial stability. Conducted between June 27 and July 20 with the participation of 146 firms, the survey found stronger short-term confidence compared to the previous round, but a slight decline in expectations over the medium term.
Respondents pointed to global macroeconomic risks as a rising concern, citing geopolitical tensions and a challenging international outlook. The probability of a high-impact negative event was seen as lower in the short term but increased slightly in the medium term, suggesting firms remain cautious about external shocks.
The Sri Lanka Risk Survey tracks the views of risk officers from licensed banks, finance companies, insurance providers, unit-trust managers, stockbrokers, microfinance institutions and rating agencies. According to the Central Bank, the findings underscore the need for resilience measures to support financial stability while preparing for longer-term risks.
Analysts noted that improved short-term confidence may reflect liquidity support and recent policy actions, while the medium-term caution signals continued structural and external challenges. By capturing market sentiment from a wide range of financial institutions, the Sri Lanka Risk Survey serves as a forward-looking indicator to help policymakers and stakeholders anticipate and manage future risks in the economy.