Sri Lanka to see slow growth, widening fiscal deficit: Fitch

Fitch Ratings has said that Sri Lanka’s recovery remains fragile despite improved macroeconomic fundamentals, with the Middle East energy shock now testing the gains achieved through stabilisation and reforms. In its latest Sri Lanka update on credit development, Fitch said growth is expected to slow, inflation to rise and the fiscal deficit to widen in 2026, even as the economy builds on stronger fundamentals following the 2022 crisis. GDP grow

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