Sri Lanka's central bank governor says the country is in a 'good position' to weather oil price volatility stemming from Middle East tensions. P Nandalal Weerasinghe made the assessment during an interview at the IMF Conference: Asia 2050, where he spoke with Bloomberg's Haslinda Amin. The comments suggest Sri Lanka's economic resilience has improved despite recent financial challenges.

Sri Lanka has faced severe economic distress in recent years, including a debt default and hyperinflation that peaked at over 70% in 2022. The country secured a $2.9 billion IMF bailout in 2023 and has since implemented reforms to stabilize its currency and rebuild foreign reserves. These measures appear to have strengthened the nation's ability to handle external shocks.

Weerasinghe's assessment carries weight given Sri Lanka's recent history of vulnerability to global commodity price swings. The central bank's improved foreign reserves and floating exchange rate regime provide better buffers against oil price volatility than the fixed-rate system that contributed to past crises. Sri Lanka's position contrasts with other emerging markets that remain exposed to energy market disruptions.