The International Monetary Fund (IMF) has projected Sri Lanka’s economy to grow by 4% in 2026 and 3.7% in 2027, following estimated growth of 5% in 2025.

According to its latest World Economic Outlook 2026 report, average annual inflation is forecast to rise from -0.5% in 2025 to 5.3% in 2026 and 5.4% in 2027.

The IMF also projects Sri Lanka’s current account to move from a surplus of 1.6% of gross domestic product in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027. Unemployment is forecast to remain at 3.9% throughout the 2025–2027 period.