Geo-economic fragmentation threatens global equity, innovation: CBSL Governor

Geo-economic fragmentation poses a significant threat to global public goods, economic equity, innovation, and international cooperation, the Central Bank of Sri Lanka Governor Nandalal Weerasinghe warned at a recent forum of Asian central bankers.

Speaking at the SEACEN Governors’ Conference, Weerasinghe urged policymakers to strengthen regional cooperation, pursue structural reforms, and enhance multilateral dialogues to counter the adverse effects of rising geo-economic divides.

The conference, themed “Prospects for Global Economy and Financial Markets in 2025” and “Policy Implications of Geo-economic Fragmentation for Asian Economies,” saw Weerasinghe serve as a panelist and moderator for the first and second sessions, respectively.

Drawing from Sri Lanka’s recent economic crisis and recovery efforts, Weerasinghe underscored the importance of building robust buffers to withstand global and domestic uncertainties. He emphasised that without coordinated regional action, fragmentation could hinder growth and cooperation across Asia’s economies.

The SEACEN conference brought together key Asian central bankers to discuss strategies for navigating evolving financial market dynamics and maintaining economic stability amid global disruptions.