IMF Projects Sri Lanka's Economic Growth at 4% in 2026 and 3.7% in 2027; India to Lead Major Economies

The International Monetary Fund (IMF) has projected Sri Lanka's economic growth at 4% for 2026 and 3.7% for 2027, according to its latest World Economic Outlook report. The IMF also projected an inflation rate of 5.4 percent for Sri Lanka in 2027.

Sri Lanka's economy is expected to sustain its recovery over the next two years, though growth is projected to moderate amidst mounting global uncertainties. This outlook was presented in the IMF's World Economic Outlook 2026: Resilience Under Strain, Urgent Choices.

Separately, the Institute of Policy Studies (IPS) released its Sri Lanka: State of the Economy 2026 Report, stating that Sri Lanka must transition from stability to private-led growth.

In a broader economic context, India is projected to remain the fastest-growing major economy in 2026, with an economic growth of 7.0%, according to the IMF's projections.