Sri Lanka's economic growth decelerates amid inflation pressures

Sri Lanka's economy is experiencing a marked deceleration in growth, according to Prof. G.L. Peiris, who raised concerns about the country's economic trajectory during a media briefing organised by the People's United Opposition in Colombo.

The former Foreign Minister highlighted that economic growth has contracted significantly from 5.8% recorded in the second quarter of 2025, underscoring a deteriorating economic outlook. Prof. Peiris emphasised that the slowdown comes at a time when Sri Lankans continue to grapple with multiple economic hardships.

Inflation remains a key challenge for households across the country, compounding pressure on family budgets and purchasing power. Youth unemployment has also emerged as a critical concern, with young people facing limited job prospects in an increasingly strained labour market.

Poverty levels continue to rise, adding to the mounting pressures faced by vulnerable populations. Prof. Peiris's remarks underscore growing concerns within opposition political circles about the sustainability of the economic recovery and the government's capacity to address structural economic challenges facing the nation.