By: Isuru Parakrama
October 10, Colombo (LNW): Sri Lanka is projected to achieve economic growth of 4 per cent in 2026, placing the country 18th among Asia’s fastest-growing economies, according to the Asian Development Bank’s (ADB) September 2026 edition of the Asian Development Outlook.
The forecast suggests that Sri Lanka’s economy will maintain a positive growth trajectory as the country continues its recovery from the severe financial crisis that disrupted economic activity in recent years.
However, sustaining this momentum will depend on continued economic stability, investment and improvements in productivity.
Taiwan is expected to record the strongest economic performance in the region, with projected growth of 11 per cent in 2026. Kyrgyzstan follows with an estimated expansion of 8.9 per cent, while Vietnam is forecast to grow by 7.8 per cent.
India, Tajikistan and Uzbekistan are each expected to achieve growth of 7 per cent, placing them among the region’s stronger performers. Meanwhile, China’s economy is projected to expand by 4.6 per cent, exceeding Sri Lanka’s forecast by 0.6 percentage points.
Sri Lanka’s projected growth rate of 4 per cent places it behind several of Asia’s emerging and developing economies but indicates continued expansion amid differing economic conditions across the region.
The latest projections highlight the varied pace of economic growth across Asia, where some economies are expected to benefit from stronger investment, industrial activity and domestic demand.
For Sri Lanka, maintaining growth over the coming years will remain important in strengthening economic resilience, supporting employment and improving living standards.
The challenge will be to translate the projected expansion into sustainable gains for households and businesses while safeguarding the progress achieved through economic recovery.
