Sri Lanka says economy regains stability, reclassified as upper-middle-income at UNGA
Sri Lanka has restored macroeconomic stability after the 2022 economic crisis and has been reclassified by the World Bank as an upper-middle-income economy, Foreign Minister Vijitha Herath told the UN General Assembly.
Herath made the remarks while delivering Sri Lanka’s National Statement at the General Debate of the 81st Session of the United Nations General Assembly in New York on September 28, 2026.
He said the country had achieved the economic progress despite conflicts in several parts of the world, including West Asia, and climate disasters affecting Sri Lanka. Ratings agencies had also recognised the country’s positive economic direction, he said.
However, Herath said these developments did not fully show the difficulties faced by countries exposed to debt and external shocks. He said Sri Lanka was working with its international partners to strengthen the economic stability achieved so far while addressing the hardships faced by vulnerable communities.
Addressing the theme of this year’s General Debate, “Restoring trust, managing transformation: a United Nations that delivers for all,” Herath said people around the world were demanding greater clarity, honesty and action from their leaders and institutions.
He said unresolved conflicts, humanitarian crises, increasingly frequent climate disasters, widening inequality and rapid technological changes had contributed to declining trust in global institutions.
Herath said Sri Lanka had also experienced the consequences of weakened trust and breaches of the social contract. He said the government of President Anura Kumara Dissanayake had been working over the past two years to rebuild public trust through action, discipline and efforts to address wrongdoing.
Referring to Cyclone Ditwah, Herath described it as one of the worst natural disasters in Sri Lanka’s recent history. He said hundreds of people were killed, more than two million were affected, livelihoods were disrupted and critical infrastructure was destroyed.
Sri Lanka also expressed sympathy with people affected by floods in Nepal and China.
Herath said such disasters showed the major human and economic cost of climate change, particularly for countries that had contributed relatively little to global emissions. He called for urgent climate justice and said Sri Lanka was on track to achieve 70 percent renewable energy by 2030 and carbon neutrality by 2050.
Turning to Sri Lanka’s decades-long conflict, Herath said deep wounds remained 17 years after the fighting ended and that more work was needed to heal them.
He said the government was committed to preventing a recurrence of such a conflict and pursuing national unity and reconciliation. National institutions were being strengthened to address outstanding issues, while the government remained opposed to racism and religious extremism in all forms.
Herath also highlighted the impact of conflicts in West Asia and elsewhere on Sri Lanka, noting the country’s location in the Indian Ocean and the large number of Sri Lankan migrant workers employed in West Asia.
He referred to an incident in March in which Sri Lanka came across a distressed ship belonging to a party to a conflict near its territorial waters. Herath said Sri Lanka used its limited resources to rescue and care for wounded and sick sailors and later rescued hundreds more while maintaining its neutrality.
He said Sri Lanka acted on the basis of international law and humanity, placing the protection of human life above political divisions.
On Gaza and the Occupied Palestinian Territories, Herath said Sri Lanka remained deeply concerned about developments in the region and called on all parties to respect international law, including international humanitarian law.
Sri Lanka reaffirmed its support for the Palestinian people’s right to self-determination and for an independent and sovereign State of Palestine existing peacefully alongside Israel within the pre-1967 borders.
The country also welcomed the UN Security Council resolution on a ceasefire in Gaza and called for humanitarian assistance to reach civilians without obstruction, while saying the recovery and reconstruction of Gaza should be treated as an urgent priority.
Herath also highlighted Sri Lanka’s contribution to UN peacekeeping, saying more than 21,000 Sri Lankan personnel had served in missions since 1957.
Sri Lanka also reaffirmed its support for multilateral disarmament and said the total and verifiable elimination of nuclear weapons remained the only real guarantee against their use.
On global development, Sri Lanka called for reform of the international financial system and fairer rules on debt and development finance as countries work towards achieving the Sustainable Development Goals by 2030.
Herath said poverty and inequality required urgent attention and highlighted Sri Lanka’s commitment to free and universal healthcare and education.
He also said Sri Lanka supported efforts under SDG 16 to build just and inclusive institutions that restore public trust and treat people equally.
Sri Lanka also reaffirmed its commitment to a fair and peaceful order at sea under the United Nations Convention on the Law of the Sea and to protecting the oceans for peaceful and sustainable use.
Herath said Sri Lanka’s prosperity was closely connected to the Indian Ocean and reaffirmed the country’s commitment to safeguarding marine biodiversity for future generations.
On governance, Herath said good governance, anti-corruption measures and institutional transparency were at the centre of the government’s national integrity drive.
He said the law was being enforced against corruption regardless of a person’s background or social standing, while investigations and prosecutions were progressing without political interference.
Herath also said progress had been made in strengthening the independence of institutions responsible for investigating and prosecuting bribery and corruption.
He said the government’s “United as a Nation” Anti-Narcotics National Programme had also made progress, including through the arrest of key figures in the narcotics supply chain.
Addressing technology, Sri Lanka called for greater technology transfers, fair access for developing countries and efforts to bridge the global digital divide.
Herath said Sri Lanka had developed national artificial intelligence ethical guidelines in line with international frameworks and stressed that AI and other emerging technologies should be developed and used responsibly and consistently with international law.
Concluding the statement, Herath described the United Nations as an essential partner for Sri Lanka but said international institutions needed to become more effective, representative and responsive.
Sri Lanka expressed support for the UN80 Initiative as an opportunity to strengthen and reform the United Nations.
Herath said global transformation must be inclusive and should reduce divisions between developed and developing countries, including gaps in technology and resilience to global shocks.
He said Sri Lanka continued to believe in multilateral cooperation because there were global problems that no country could solve alone, calling for a United Nations that listens more closely, represents countries more fairly and delivers for all.