Sri Lanka is striving to achieve 4-5% GDP growth in the medium to long-term in comparison to the baseline requirement of 3% set by the International Monetary Board (IMF) to achieve debt sustainability, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe has stated.

Weerasinghe noted that Sri Lanka has been consistently over-performed through structural reforms since the economic crisis in 2022.

During an interview with CNBC, Weerasinghe said although the IMF has set a debt sustainability target in 2032, he is seeking to achieve the target much earlier.

He said Sri Lanka’s economy is on track for recovery, with rates held at 7.7% and a healthy policy buffer in place.

Weerasinghe also highlighted reforms that are now shifting from crisis stabilisation to driving 4-5% growth, adding they are aiming for faster debt sustainability and a full return to pre-crisis levels within a few years.

Moreover, Weerasinghe noted that there is less uncertainty now as US tariffs on Sri Lanka have eased to 20% from an initial 44% announced.

Considering the tariff rates imposed on fellow competitors, Weerasinghe is of the view that the impact on Sri Lankan businesses is much lesser than initially anticipated.