Standard Chartered’s next chapter in Sri Lanka: Stability, partnerships and ‘here for good’

Sri Lanka has faced a period of significant economic and social challenges but is now beginning to show early indicators of recovery. From your perspective, how do you see this bounce back unfolding?

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Q: As Lanka is showing encouraging signs of recovery, the external sector has shown commendable progress:

™Exports have seen a steady recovery, driven by strong performance in textiles, agricultural goods, and emerging technology services. Sri Lanka’s total exports for the first seven months of 2025 were $ 12.0 billion, with merchandise exports totalling $ 7.79 billion (7% increase) and services exports reaching $ 2.19 billion (10% increase).

™ Worker remittances, a vital source of foreign exchange, have rebounded strongly recording $ 5 billion in the last 7 months, rising 20% from a year ago. This resurgence reflects increased confidence and improved channels for inflows.

™ Tourism—once severely impacted by global and local disruptions—has seen a strong bounce back, with monthly arrivals and earnings showing encouraging year-on-year growth. The performance pushed the cumulative arrivals for the first seven months of 2025 to 1.4 million reflecting a 14% growth.

Sri Lanka has also gradually opened car imports and that has not impacted the trade deficit adversely due to the higher fx higher outflows.

Foreign Direct Investment (FDI), while still below pre-crisis levels, is showing early signs of returning interest, especially in sectors such as renewable energy, manufacturing, and logistics.

These trends in the external sector have contributed significantly to improving the balance of payments, rebuilding reserves, and stabilising the currency.

Sri Lanka has made remarkable strides in stabilising its economy, undertaking one of the largest fiscal adjustments in its history—equal to nearly 8% of GDP. This has been exceptionally significant by both historical and international standards. Furthermore, total revenue collected exceeded the half-yearly estimate by 3%.