Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

Major General Asitha Pushpakumara has assumed duties as the General Officer Commanding (GOC) of the Sri Lanka Army’s 56 Infantry Division, headquartered at Kokeliya, Vavuniya.

An alumnus of Colombo Thurstan College, Major General Pushpakumara has served in the Sri Lanka Army for more than three decades, contributing to military operations during the country’s three-decade-long conflict.

He is a recipient of several military decorations, including the Rana Wickrama Padakkama (RWP) and Rana Sura Padakkama (RSP), in recognition of his gallantry and service. He has also received 17 other military decorations during his career.

Recognised as one of the youngest General Officers Commanding in the Sri Lanka Army, he has undergone extensive military training and acquired professional qualifications during his service.

He holds two master’s degrees, one from the University of Northampton in the United Kingdom and the other from the Indian Institute of Technology Madras in India.

Tamil Progressive Alliance (TPA) Leader and MP Mano Ganesan yesterday urged Opposition and SJB Leader Sajith Premadasa to uphold the principles of equal citizenship and mutual respect within the SJB, objecting to remarks attributed to senior party member Lakshman Kiriella concerning Tamil and Muslim communities.

In a letter to Premadasa, Ganesan has expressed concern over remarks reportedly made by Kiriella during a meeting between an SJB delegation and the Most Venerable Mahanayake Thera of the Malwathu Chapter in Kandy. Ganesan said he had also conveyed his concerns directly to the Opposition Leader.

While welcoming the delegation’s engagement with the country’s Buddhist religious leadership, Ganesan took exception to Kiriella’s reported suggestion that the government was using the issue involving Ven. Galagoda Aththe Gnanasara Thera to appease Tamil-speaking citizens and others outside the Sinhala-Buddhist community.

He also criticised the reported use of the terms “sulu jaathi” and “maha jaathi” to distinguish between minority and majority communities, arguing that Sri Lanka should move beyond such terminology.

Ganesan has said that if accurately reported, the remarks risked reinforcing communal divisions and undermining the dignity of Tamil and Muslim citizens, who were equal stakeholders in the country’s plural society.

He has described the use of such language in a discussion with the country’s senior Buddhist religious leadership as particularly regrettable.

The TPA leader says his objections to the reported remarks should be treated separately from the legal proceedings involving Gnanasara Thera, including the controversy over the monk’s prison attire.

On the imprisonment, Ganesan says the rule of law must remain paramount, adding that he and others had refrained from questioning the judicial outcome on that basis.

He has said he would not object if President Anura Kumara Dissanayake, after due consideration and in accordance with the law, addressed legal deficiencies identified in a previous presidential pardon and granted a fresh pardon. He would respect the exercise of presidential discretion within the legal framework.

Regarding the prison attire controversy, he has called for the committee appointed by the President to be allowed to complete its examination and submit recommendations. Proposals to amend laws and regulations governing prisoners’ attire were expected within two weeks, he said.

Any resolution, Ganesan emphasised, must uphold the law, respect institutional responsibilities and ensure equality before the law.

He added that he had already appealed publicly to Tamil-speaking Sri Lankans to refrain from commenting on the issue while the review was underway, citing the risk of sensitive controversies escalating into wider communal tensions.

However, neither the imprisonment nor the questions surrounding a possible pardon or prison attire justified language that marginalised or disparaged Tamil and Muslim citizens, he has said.