Sri Lanka, Jan. 21 -- Sri Lanka's 2026 outlook is strong on the back of political stability and policy continuity with a growth forecast closer to 3.5-4%, and country's rating outlook is expected to change from stable to positive this year, Economist Saurav Anand told the launch of the Standard Chartered Global Focus Economic Outlook 2026 in Colombo yesterday.

The economist said consumption has picked up with overall consumption growth driven by the moderation in interest rates and lot of room for muted investments in the last three to four years to catch up.

With government capex coming back on track, increase of overall consumption and more investment these should support growth closer to 4%. On the fiscal side, the government has per...