Monthly Economic and Financial Developments (MEFD) February 2026

Published: Monday March 30th, 2026

Economic indicators suggest that during the month of February, the domestic economy’s pace of expansion was sustained, relative to the comparative period in 2025, with key economic indicators moving closer to their long-term potential. Tourism activity continued to expand, reflecting further robust expansion in cruise sector earnings, and strengthened stopover receipts, despite persistent capacity constraints. On the fiscal front, preliminary data on the Government’s budgetary operations for the second quarter of FY2025/26 showed that the deficit widened relative to the same quarter in FY2024/25, as the reduction in total revenue exceeded the decline in aggregate expenditure. Further, monetary trends for February were marked by a reduction in the narrow measure of banking sector liquidity, despite an expansion in the deposit base and a contraction in domestic credit. However, external reserves increased, underpinned by net foreign currency inflows through the private sector.

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