The International Monetary Fund (IMF) has projected that Sri Lanka’s economy will grow by 4 percent in 2026 and 3.7 percent in 2027, according to its October 2026 World Economic Outlook.
Growth was 5 percent in 2025. The report forecasts inflation at 5.3 percent in 2026 and 5.4 percent in 2027, compared with negative inflation of 0.5 percent in 2025.
The IMF expects the current account to record a deficit of 0.5 percent of gross domestic product (GDP) in 2026 and 0.3 percent in 2027, after a surplus of 1.6 percent in 2025. Unemployment is projected to stay at 3.9 percent in both years.
For readers in Sri Lanka, the inflation forecast points to a return of rising consumer prices after a year of falling prices.
Globally, the IMF expects growth of 3.1 percent in 2026 and 3.4 percent in 2027. It said ongoing conflict in the Middle East, trade tensions and higher energy costs remain risks to the outlook.
