During the month of September, countries in the South Asian region experienced mixed macroeconomic developments. On a more positive aspect, Sri Lanka received the much-awaited S&P upgrade on Sri Lanka’s sovereign rating and Bangladesh’s economy is showing renewed resilience, driven by strong growth in digital transactions, exports, and improved external balances. On the other hand, massive floods in Pakistan struck both rural and industrial centres, straining food supplies, exports, in an already fragile economic recovery and India continues to battle the high tariff environment as the current 50% tariffs are harming exporters. Adding on to this negative pressure of the region, Maldives’ narrowing reserves highlighted the strain of external financing needs, even as tourism revenues supported collections.
Against this backdrop, fiscal adjustments and new partnerships remain key tools, but the extent of recovery will also depend on how effectively countries manage inflation risks, strengthen external buffers, and adapt to recurring climate shocks.
It will be interesting to see whether this momentum and trajectory continue for these economies heading into 2026
The full report covers further details, including:
1. Top 3 things you should know about the regional countries.
2. Summary of key economic indicators for the month.
3. Key news articles in detail,
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