Govt. admits economic growth decline this year, next year

• Sri Lanka’s real economic growth rate is expected to decline to 3.5 per cent by 2026 from the current level of 5 per cent
• It is projected to remain at approximately 3.1 per cent annually until 2030

By Yohan Perera and Ajith Siriwardana  

Deputy Minister of Finance Harshana Suriyapperuma, responding on behalf of the government, acknowledged that Sri Lanka’s real economic growth will begin to decline starting this year.  

The Deputy Minister made this statement in response to a question raised by MP Ravi Karunanayake in Parliament.  

“Sri Lanka’s real economic growth rate is expected to decline to 3.5 per cent by 2026 from the current level of 5 per cent, and further to around 3.1 per cent by the end of 2026. It is projected to remain at approximately 3.1 per cent annually until 2030,” the Deputy Minister said.  

He added that the nominal economic growth rate is expected to be 7.1 per cent this year, remain at 7.1 per cent in 2026, rise to 8.4 per cent in 2027, and stay at 8.3 per cent from 2028 to 2030.  

Samagi Jana Balawegaya (SJB) MP Harsha de Silva, responding to the Deputy Minister, questioned the government’s economic strategy. “What is the use of a government if the country’s economic growth is projected to decline to 3.5 per cent in 2026 and remain at 3.1 per cent from 2026 to 2030?” the MP asked.  

“Aren’t you ashamed? What kind of economic model have you adopted?” he questioned.  

“The Deputy Minister says the country’s economic growth is declining, yet claims that inflation and interest rates have dropped. He insists the economy is stable. How can this be? You should be ashamed,” he added.  

“The government will have to change its economic policy,” he stressed.