CBSL urges Govt. to stay on fiscal consolidation path

Wednesday, 18 March 2026 00:25 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) yesterday urged the Government to continue its fiscal consolidation agenda, warning that rising global risks could affect macro-financial stability.

Releasing its Financial Sector Performance 2025 report, the Central Bank said geopolitical tensions, commodity price volatility, and adverse weather conditions pose risks to the financial system.

“Global uncertainties, including geopolitical conflict in the Middle East, volatility in commodity prices, and adverse weather conditions, could pose downside risks to credit quality of the financial sector. Against this backdrop, sustained fiscal consolidation and the strengthening of external sector buffers will remain essential to safeguarding macro-financial stability,” the CBSL said.