COLOMBO, Jan. 28 (Xinhua) -- Sri Lanka's economic growth in 2026 is unlikely to be affected by the widespread destruction caused by Cyclone Ditwah, with the country expected to stay on its projected recovery path, the Central Bank of Sri Lanka said on Wednesday.
Central Bank Governor Nandalal Weerasinghe told a media briefing in Colombo that, based on data from December, gross domestic product (GDP) growth is forecast at between 4 and 5 percent this year, and the overall trajectory is not expected to deviate despite the storm's initial impact.
He noted that prices of essential goods rose sharply in the immediate aftermath of the cyclone due to disruptions in supply chains, but normalized after transportation and distribution networks were restored, easing pressure on consumers.
Inflation is projected to remain around the bank's target of 5 percent in the coming months, reflecting improving market conditions and policy stability, he said.
Meanwhile, the central bank's Monetary Policy Board has decided to maintain the Overnight Policy Rate at 7.75 percent after evaluating domestic developments and global uncertainties. The board said the current monetary policy stance is aimed at stabilizing inflation while supporting economic activity and helping the economy reach its growth potential. ■