Three years ago, Sri Lanka was on its knees. Queues for fuel snaked for kilometres, electricity cuts plunged homes into darkness, and the shelves of pharmacies and supermarkets lay bare. It was not only an economic collapse — it was a collapse of confidence, governance, and faith. People felt abandoned by the very system meant to protect them.
As 2025 draws to a close, the picture looks very different. The economy, once in free fall, is slowly finding its balance. Inflation has cooled, the rupee has stabilised, and foreign reserves are gradually building up again. Tourism has revived, debt restructuring is taking shape, and international partners are back at the table. On the surface, the storm has passed.
But scratch beneath that surface and the question remains. Has recovery really reached the people?
The truth is that this revival did not come from political brilliance or quick fixes. It was built on the resilience and sacrifices of ordinary Sri Lankans who bore the pain of austerity, higher taxes, and shrinking incomes. It was the patience of a public that endured hardship with remarkable calm, even when their confidence in leadership was shattered.
The IMF programme has undeniably helped stabilise the economy. The agreement forced long-overdue reforms — tightening government spending, increasing tax collection, and bringing some transparency to public finances. These were bitter measures, but they restored a degree of trust among lenders and investors. Without that partnership, Sri Lanka would have faced isolation and deeper chaos.
Yet, stability is not the same as prosperity. For millions of citizens, daily life remains an uphill climb. Prices have eased slightly, but essentials are still expensive. Electricity tariffs, transport costs, and food bills continue to stretch household budgets. Many middle-income families have slipped quietly into poverty, and too many parents are still forced to choose between paying school fees and buying groceries.
So while the government proudly quotes GDP figures and IMF reviews, the average citizen is still asking a far simpler question. “When will we feel it?”
Debt restructuring was a milestone achievement. Through tough negotiations, Sri Lanka has managed to secure more favourable repayment terms from key partners such as Japan, China, and India. This has eased short-term pressure and given the country a chance to plan ahead. But it also came with strings attached — tight fiscal rules and limited public spending.
Fiscal discipline is vital, yes — but if it becomes an obsession, it risks turning recovery into a numbers game. The goal of reform must not be to please creditors; it must be to rebuild confidence at home. People need to see that their sacrifices are leading somewhere meaningful. Every rupee collected in taxes must be spent transparently and wisely.
There are, thankfully, bright spots. Tourism is slowly coming back, with close to two million arrivals expected by year end. That revival has breathed life into small businesses, hotels, and communities that rely on visitors. But Sri Lanka cannot live on tourism alone. A strong recovery must come from a more diverse and modern economy — one that values technology, innovation, renewable energy, and agriculture just as much as beaches and tea.
The other pressing challenge is the human one. The ongoing brain drain is bleeding the country of its best talent. Young professionals continue to leave in search of stability and opportunity abroad. Reversing that trend will take more than patriotic appeals. It will require real confidence in governance — a belief that hard work is rewarded, that corruption is punished, and that opportunity is equal.
The government in 2025 stands at a crossroads. It can celebrate these short-term wins as political victories — or it can treat them as the starting point for deep, structural reform. This means fixing loss-making state enterprises, strengthening public institutions, and ensuring that social safety nets reach those most in need.
It also means confronting corruption — the cancer that has eaten into every corner of the state. Without accountability, even the most promising recovery will collapse under its own hypocrisy. The people have sacrificed too much to see their efforts wasted by greed or mismanagement.
Ultimately, the measure of Sri Lanka’s recovery should not be found in IMF reports or foreign investment charts. It should be seen in the everyday lives of its people — in the family that can finally afford three meals a day, in the graduate who decides to stay instead of migrating, and in the farmer who earns enough to live with dignity.
Sri Lanka has come a long way from the despair of 2022. But the journey is far from over. Recovery cannot be declared complete until it touches every home, every province, and every citizen.
If those in power forget that, this recovery — like so many before it — will fade into yet another mirage on the horizon.
(Source - Dailymirror)
Leave your comments
Login to post a comment
Post comment as a guest