Govt. must push reforms with 2026 FDI projected under $ 1 b: SCB

■ Delays in critical reforms lends to moderate FDI showing ■ Tourism mix, trade facilitation and export diversification flagged as priority areas ■ Single trade window, trade treaties and digitisation cited as urgent enablers ■ Finalising PPP law viewed as key to attracting large-scale FDI and infrastructure capital

- BY DEVAN DANIEL

STANDARD Chartered Bank CEO Bingumal Thewarathanthri said Sri Lanka's economic outlook for 2026 was cautiously optimistic but warned that delays in reforms and policy execution could weaken the investment

STANDARD Chartered Bank Sri Lanka CEO Bingumal Thewarathanthri climate and slow foreign direct investment inflows projected to reach between $ 600-900 million in 2026.

"As a country with a CCC plus credit rating, Sri Lanka is vulnerable to external shocks, and that is something we have Standard Chartered Bank Economist Saurav Anand consistently stated over the past year," he said, noting that the economy had nevertheless remained more stable than expected following Cyclone Ditwah.

"We are in a fairly stable position compared to where we were in December, and we are reasonably confident, Thewarathanthi said, adding that maintaining fiscal discipline on both revenue and expenditure would be critical in 2026.

He said infrastructure spending could not be fully financed through domestic budgets alone and stressed the importance of careful fiscal management. "If we manage fiscal discipline in terms of revenue and expenditure, we should be able to manage the situation," he said.