According to S&P Global Ratings, Sri Lanka’s long- and short-term foreign and local currency sovereign credit ratings have been affirmed at ‘CCC+/C’ with a stable outlook, reflecting what the ratings agency described as the country’s economic resilience despite recent external shocks.

S&P said Sri Lanka’s economic recovery has been supported by strong revenue growth and proactive government measures in response to challenges, including Cyclone Ditwah and disruptions in Middle East energy markets.

According to the agency, real GDP growth reached 5.1% in the first quarter of 2026.

However, S&P noted that external pressures are increasing, with a higher import bill, currency depreciation, and rising energy costs contributing to inflationary pressures.

The agency said inflation had risen to 6.8%, while gross official reserves declined to USD 6.45 billion in June.

S&P forecasts that Sri Lanka’s economic growth will moderate to 3.8% this year, while the current account is expected to shift to a deficit of 1.7% of GDP amid mounting external challenges.

The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC have announced a joint investment of up to $40 million in South Asia Gateway Terminals (Pvt) Ltd. (SAGT) to modernize and decarbonize operations at the Port of Colombo, Sri Lanka’s premier maritime gateway. 

The financing aims to strengthen the port’s competitiveness, resilience, and sustainability, reinforcing its role as South Asia’s leading transshipment hub.

The package includes a sustainability‑linked loan of up to $20 million from IFC, with $8.57 million mobilized through IFC’s Managed Co‑Lending Portfolio Program (MCPP), alongside a parallel green loan of up to $20 million from HSBC. 

Funds will be used to acquire advanced twin‑lift ship‑to‑shore cranes, boosting productivity, operational reliability, and energy efficiency to meet rising global trade demands.

This marks IFC’s first sustainability‑linked financing for infrastructure in Sri Lanka and its return to the port sector after two decades.

 IFC first partnered with SAGT in 1999 to finance Sri Lanka’s first public‑private partnership container terminal, helping establish Colombo as a regional transshipment hub. 

Sri Lanka’s export sector continued its strong upward trajectory during the first half of 2026, with the country’s total exports surpassing the significant US$9 billion milestone.

According to the latest figures, Sri Lanka’s combined merchandise and services exports reached an estimated US$9,012.24 million during the January to June 2026 period, recording an 8% increase compared to the corresponding period in 2025.

Further analysis showed that cumulative merchandise export earnings for the first six months of the year amounted to US$7,073.31 million, representing an 8.95% year-on-year increase. The performance highlights steady growth across key export sectors and underscores the continued competitiveness of Sri Lankan products in international markets.

Meanwhile, the services export sector maintained its positive growth trend, generating an estimated US$1,938.94 million during the January-June 2026 period. This marked a 4.49% increase compared to the same period last year and further reinforced the sector’s growing contribution to Sri Lanka’s overall export earnings and external sector performance.

Provisional data released by Sri Lanka Customs, together with estimated export values for Gems and Jewellery as well as Petroleum Products, indicated that merchandise exports reached US$1,314.10 million in June 2026 alone. This represented a robust 15.09% increase compared to June 2025, demonstrating growing demand for Sri Lankan exports despite evolving global market conditions.