By Shanthi Mendis –

Prof. Shanthi Mendis
After economic collapse, political turbulence and social hardship, Sri Lanka stands at a turning point. The country’s recovery will depend not only on economic reforms or political will, but on the ability of its people and leaders to work together toward a fairer, more resilient future.
Unlike past presidents, Anura Kumara Dissanayake (AKD) has drastically reduced state perks, residence costs, security staff, police escorts, and vehicle fleets for politicians—including himself. The savings from these reforms are estimated at around Rs. 1.1 billion annually. While largely symbolic, these reforms send a powerful message that public service must be grounded in accountability and restraint.
The current government is not perfect. Some of the Ministers lack experience and are learning on the job. However, does the current government deserve the support of citizens? AKD is providing responsible leadership and the government has begun work to tackle many profound national issues.
First, Drug trafficking. It is one of the most pressing problems confronting Sri Lanka today. In the absence of the emergence of a honest and courageous leader, Sri Lanka’s situation could have deteriorated rapidly to that seen in Afghanistan or Mexico —countries that are struggling to contain drug-related violence, organised crime, corruption, and social instability. Over the past seven decades, Sri Lanka witnessed the underworld strengthen due to political patronage. Several notorious narcotic kingpins even operated close to former presidents. The government has intensified efforts to disrupt narcotic networks and prosecute drug kingpins. The goal is not only to enforce the law but also to dismantle the deeper relationship between crime and politics that has long undermined public order. It is an extremely difficult and risky battle, but one essential for a peaceful and stable society.
Second, ADK is effectively managing the complex realities of ethnic diversity to promote national harmony for the first time since independence. Across the world countries such as Singapore, Switzerland, South Africa, and Canada have successfully managed ethnic and religious diversity of their populations. However, since independence, Sri Lanka’s political leaders have often exploited ethnic and religious differences—Sinhala, Tamil, Muslim, and Burgher; Buddhist, Christian, Hindu, and Muslim—to consolidate majority support. Incidents such as the “Sinhala Only Act” (1956), the burning of the Jaffna Public Library (1981), the anti-Tamil riots of “Black July” (1983), post-2009 victory narratives, and the Easter bombings (2019) illustrate the devastating consequences of this divisive politics.
The recent UN Human Rights Council resolution on Sri Lanka, adopted without a vote at its 60th session, fails to acknowledge the current leadership’s genuine commitment to reconciliation. While the resolution is politically insensitive, it can be used as an opportunity. Constructive engagement with international partners could help Sri Lanka to access technical and financial assistance to strengthen its reconciliation programmes and institutions.
Third, the independence of the judiciary and the professionalism of the police are fundamental to sustainability of any democracy. In recent years political interference in these institutions has severely eroded public trust. According to a 2024 public-perception survey by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the police were ranked as the most vulnerable institution to bribery and corruption. The current government has pledged to protect the autonomy of the judiciary and the police force. The Chief Justice and senior judges now have greater freedom to pursue reforms and function independently. The police force under the new Inspector General of Police has introduced changes in recruitment, promotions, and transfers to ensure efficiency and accountability.
These reforms are still evolving, but they have already contributed to improved international rankings. In 2024, Sri Lanka rose to 75th place in the World Justice Project’s Rule of Law Index — a modest but encouraging sign. A strong and independent justice system is vital for stability, investment, and effective governance.
Fourth, corruption has been one of the most persistent barriers to progress in Sri Lanka. Over the years corruption networks have become deeply embedded in the society, involving politicians, government servants, those in law enforcement and public. In Transparency International’s 2024 Corruption Perceptions Index, Sri Lanka was ranked 121st out of 180 countries (where rank 1 indicates the least corrupt).
AKD’s administration is pursuing a multifaceted strategy to tackle bribery and corruption. It is combining legal reforms (including the Anti-Corruption Act No. 9 of 2023), asset-forfeiture legislation, institutional strengthening, and the National Anti-Corruption Action Plan 2025–2029, developed by CIABOC with UNDP support. The government is expanding CIABOC’s mandate and reinforcing the Auditor General’s oversight role.
Under the leadership of the Director General of CIABOC, the government has prioritised long-overdue investigations into elite corruption, including the bond scam and procurement irregularities of past regimes. For these reforms to take root, CIABOC, the Auditor General’s Department, and other oversight institutions need consistent funding and professional staff. International support from the World Bank and the UN Office on Drugs and Crime, through initiatives like the Stolen Asset Recovery (STAR) programme, can also strengthen Sri Lanka’s ability to trace and recover illicit assets.
Fourth, there are encouraging signs of economic recovery. According to the World Bank and the International Monetary Fund (IMF) , Sri Lanka—along with Iceland and Ghana—is among the few nations to achieve a rapid economic rebound following financial collapse. This progress has been possible only because AKD has prioritised peace, ethnic harmony, law enforcement, and good governance.
Government is leading structural and policy reforms under IMF guidance, including debt restructuring and fiscal discipline. Tourism and remittances have rebounded, and investor confidence is growing. In 2024, Sri Lanka’s economy grew by 5%, exceeding expectations. Inflation has remained below the Central Bank’s 5% target—far below the 69.8% peak recorded in September 2022.
However, many households remain under strain from higher taxes and prices. Poverty and inequality persist, with nearly 25% of the population pushed below the poverty line during the 2022 crisis. The 2025 budget allocated Rs. 749 billion for social protection programmes, including Aswesuma, Praja Shakthi, a 40% increase in the minimum wage, and expanded nutrition and school grant schemes. If these initiatives are implemented transparently using digital technology for targeting, the World Bank projects that poverty could decline to 19–22% by 2026.
The 2026 budget presents a cautiously growth-oriented plan, combining fiscal consolidation (with a deficit targeted around 5 % of GDP) and debt reduction alongside increased social welfare, digital transformation and infrastructure investment. Although AKD is steering Sri Lanka in the right direction, full recovery will take decades.
Finally, sustainable recovery also depends on freedom of expression and accountability — the freedom to speak and to hold leaders accountable. The current government is secure enough to tolerate criticism. Journalists, academics, and citizens are expressing their views with greater confidence.
We must not forget the atmosphere of fear that once silenced dissent. During the 2022 crisis, when the nation was in turmoil, it was with great apprehension that I published the book “Sri Lanka: Tears and Dreams of a Fragile Democracy”. Today, I have no fear in expressing my views—and, if necessary, I can be critical of AKD’s government in the future. This renewed openness is essential for a healthy democracy.
Sri Lanka’s journey toward sustainable economic, social, and environmental development will be long and arduous. While some governance reforms are gradually taking root, progress is slow due to institutional inertia, resource constraints, bureaucratic inefficiency and pervasive corruption. In addition, the opposition continues to spread misinformation to mislead the public and grab power at any cost.
Nevertheless, AKD continues to demonstrate courage, dedication and conviction. His leadership is driving the nation towards stability and sustainable recovery. Recovery is not the responsibility of the president or the government alone. It is a national initiative. While the state leads with integrity and credibility, we the citizens have a sacred duty to respond with engagement, accountability and long-term commitment.
*The writer is a Specialist Physician, former Professor of Medicine, University of Peradeniya, and former Senior Adviser, World Health Organization Geneva.
ramona therese fernando / November 11, 2025
AKD must take courage and place his one and only focus on the Stolen Asset Recovery (STAR) programme to trace and recover illicit assets stashed in overseas accounts. Multi-Billions US$$ of Lankan money will be soon recovered this way. All should be given back to the Lankan worker to build up the country from grassroots levels. Country success is assured and country will bloom.
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old codger / November 12, 2025
“According to the World Bank and the International Monetary Fund (IMF) , Sri Lanka—along with Iceland and Ghana—is among the few nations to achieve a rapid economic rebound following financial collapse. This progress has been possible only because AKD has prioritised peace, ethnic harmony, law enforcement, and good governance.”
The first part of this statement may be true. But the second part is debatable. AKD might have done well on all that since he was elected, and with a Parliament of his own party.
But didn’t RW during his short reign preserve ethic harmony, peace and economic stability while operating with the very parties that had destroyed it in the first place? That was a far more difficult task.
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Jit / November 13, 2025
OC, Ranil didnt do any damn thing to achieve ethnic harmony! -he only let it simmer! He was the one who vehemently opposed holding PC elections – what Tamils consider as their most practical devolution tool, quoting ‘no money’. But he easily found billions to spend on 24 overseas trips, some fun filled tiki-tours, within his 22 months of borrowed Presidency! He always spoke about ethnic harmony and promised solutions, but didnt do a darn thing to achieve them! Contrarily, AKD has done much more to both northern and upcountry Tamils within one year than any leader in our recent memory. The so called current ‘economic stability’ happened only because of the IMF which even Gota was about to start negotiations with. RW only followed that path as much as AKD is doing now too. In the end it is the IMF that brought economic stability to SL – not Ranil or AKD. That said, I must add – as the author confirms too, the mass level of Presidential/ministerial cost reductions, new political culture, elimination of tamashas, overseas travel with platoons, and near zero corruption by the NPP government has helped a lot to boost the economy to the level it is today.
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old codger / November 13, 2025
Jit,
“The so called current ‘economic stability’ happened only because of the IMF which even Gota was about to start negotiations with. RW only followed that path as much as AKD is doing now too. “
First, Gota was not “about to start negotiations “. Here is the truth:
https://economynext.com/sri-lanka-does-not-need-the-imf-at-the-moment-no-default-minister-cabraal-85769/
Ranil was telling Cabral to go to the IMF as early as 2021, but he said he had different methods, I can remember.
https://www.ft.lk/front-page/Ranil-calls-for-parliamentary-debate-on-financial-crisis/44-720483
Sure, it was IMF methods that aided recovery, but it was neither Gota or AKD that got them in. The NPP actively opposed the IMF and said they would “renegotiate”. That didn’t happen. Instead, AKD caved in.
https://economynext.com/sri-lankas-npp-slams-imf-claims-board-approval-was-hurried-fearing-npps-popularity-116610/
Here is Tilvin Silva: “JVP general secretary Tilvin Silva recently rubbished the IMF deal claiming that the international lender is only interested in bailing out corrupt governments.
The IMF programme, Sri Lanka’s 17th to date, will just not work, said Silva.” Don’t you think, by Tilvin’s logic, the present government is also corrupt?
I don’t mind the NPP following IMF guidelines, but it is rather hypocritical for them to claim the credit given that they opposed the agreement AND said it would never work just two years ago.Gota WAS the cause of the economic collapse, but AKD wasn’t the one who recovered stability either.
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Jit / November 13, 2025
“…..First, Gota was not “about to start negotiations ….”
Wrong OC,
Gota actually took the steps for the staff level discussions in March 2022 and in April sought a $3 billion loan from the IMF. Then the IMF teams visited Sri Lanka in June 2022 and held discussions with Gota as president and Ranil as the PM. Those discussions were the initial ones to define an economic program for an Extended Fund Facility (EFF) arrangement. Both Wikipedia https://en.wikipedia.org/wiki/Sri_Lanka_and_the_International_Monetary_Fund#:~:text=this%20collaborative%20endeavor.-,2019%2Dpresent%20economic%20and%20political%20crisis,IMF%20assistance%20prior%20to%20April
and India Times
https://bfsi.economictimes.indiatimes.com/news/industry/sri-lanka-to-work-with-imf-to-resolve-countrys-current-economic-crisis-president-gotabaya-rajapaksa/90283949#:~:text=Sri%20Lanka%20will%20work%20closely,to%20the%20nation%20on%20Wednesday
reported the initial role Gota made while basil was the Finance Minister.
These initial discussions under President Rajapaksa eventually paved the way for the full IMF program, which was finalized and approved in March 2023 after he had resigned and Ranil Wickremesinghe was in office.
Therefore, Ranil was not the one who initiated the current IMF line of credit facility. However, he is certainly one of the two who created the 2022 economic mess and bankruptcy by increasing SL total debt by 42.8% to LKR 4.26 trillion between 2015 and 2019 yahapalanaya, that needed IMF to come forward and salvage!
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old codger / November 13, 2025
Jit,
The author seems to think that “This progress has been possible only because AKD has prioritised peace, ethnic harmony, law enforcement, and good governance.”.Why doesn’t she remember that average inflation in 2024 was 1.2%, and the USD came from 400 to 300 long before AKD was elected?
Sri Lanka’s inflation accelerated in October 2025 to 2.1% (almost double) , and the USD is at 304.
Praise AKD for what he does, not what he didn’t do.
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Jit / November 13, 2025
Nowhere I gave AKD or NPP the credit for ‘lifting’ the economy from the 2022 bankruptcy. I said it was done by the IMF. However, I credited NPP for reducing waste by introducing a new political culture which definitely is a major factor in improving fiscal responsibility. And I care less about what Tilvin or any other politician said in the past and/or what they are doing in the present. All what matters is maintaining the consistency of the IMF progress and salvage the economy step by step from the recent mess.
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old codger / November 13, 2025
Jit,
“Nowhere I gave AKD or NPP the credit for ‘lifting’ the economy from the 2022 bankruptcy. “
But the learned author did, and that’s what I was responding to. Authors shouldn’t gild lilies too much.
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Ajith / November 13, 2025
“Country success is assured and country will bloom.”
NPP just had one year in power. Its Original policies and promises completely changed after the election. The country did not recovered or not in a position to pay the debts. The country’s defence took major sunk of expenditure and still the same old military which is institutionally trained with racism and its contribution towards drug mafia’s is huge. Economy is only one factor but it depends on other factors. The Other factors remain worse and NPP did not touch it. Time will tell.
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Native Vedda / November 13, 2025
ramona therese fernando
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“All should be given back to the Lankan worker to build up the country from grassroots levels.”
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How sure are you that Lankan worker would make use of the opportunity?
Do they really want to work, do they want to give up their right to entitlement?
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https://www.youtube.com/watch?v=czNWvBcbvyg&t=16s
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hanchopancha / November 13, 2025
How come nobody talks about the container which was seized by customs with 300 kg. of heroin and ended up with the Government Chemist whose report disappeared into ether, now donkeys years ago.
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Naman / November 13, 2025
“ to strengthen its reconciliation”
This is well talked about but really not seen in practice. Another word that is used is REHABILITATION. Did not the Rajapaksas use the ex-tigers( like Pillaiyan Karuna and KP) to do criminal activities. Didn’t the drug culture get established in the North and East under the very nose of abundant government security forces.
The racially biased previous regimes promoted drug addiction in the minorities in order bring them down educationally as well as economically.
The Sri Lankan origin citizens in the foreign countries still don’t mix up. This barrier exists from July 1983 onwards. Breaking the barrier needs the help of the SL High commissioners and Ambassadors
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Naman / November 13, 2025
Will the AKD government be prepared to develop the North and East as suggested by Mr Sridharan MP—->
https://www.facebook.com/share/v/1KNeZzHreg/
The majority race is still unwilling to do the right things for REAL RECONCILIATION
The country can not progress with the current mind set of the Sinhala Buddhist Fundamentalism/SUPREMACY
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SJ / November 13, 2025
The IMF bailout came with a price tag and the JVP is not implementing its economic agenda but that of the IMF.
Has the economy recovered?
There is still time, but not long, for disillusionment to strike the dreamers.
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Native Vedda / November 13, 2025
“The IMF bailout came with a price tag and the JVP is not implementing its economic agenda but that of the IMF.”
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The IMF didn’t invade Sri Lanka — it was invited.
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After years of economic mismanagement, corruption, and political short-termism, successive governments turned to the IMF as a last resort. We know the so-called “bailout” always came with a price tag, austerity, higher taxes, subsidy cuts, and privatization.
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We also know these are not the JVP’s policies; they are the IMF’s. We also know while they may bring temporary stability, they punish ordinary people for the sins of past leaders.
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If successive governments had managed public finances responsibly and built a resilient economy, we wouldn’t be following someone else’s playbook today. The tragedy is not that the IMF stepped in — it’s that we left ourselves with no other choice.
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The asses who championed majoritarianism — with their disastrous language policies, delusions of self-sufficiency, and narrow nationalism — are the very architects of Sri Lanka’s decline and destruction. They fanned the flames of racism, organized riots, and sowed division in the name of patriotism, while bankrupting the nation they claimed to defend.
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Their import-substitution fantasies and populist slogans crippled productivity, drove away investment, and isolated Sri Lanka from the global economy.
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SJ / November 14, 2025
“The IMF didn’t invade Sri Lanka — it was invited.”
Eureka!
How come that nobody thought of that before?
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Mallaiyuran / November 15, 2025
Good morning!
It is amazing, man, even in your stuff world people do wake up for the first time in their life at 80s, 90s and cry Eureka! That is because Old Rowdy, in 2010, when IMF refused to loan, he went and begged Sonia to sponsor a loan for him. Then he imported only “the Stuff” for that money, too. D.M. Jeyaratnana’s signature was used to have the container released from customs.
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Ajith / November 13, 2025
“Across the world countries such as Singapore, Switzerland, South Africa, and Canada have successfully managed ethnic and religious diversity of their populations.”
Author correctly identified that many countries successfully managed ethnic and religious diversity of their populations. This is the message to AKD or NPP or JVP or even Opposition parties and the people. So far, the politicians and even the JVP failed to accept that it is the fundamental challenge which is a necessity to complete the AKD’s vision to a peaceful Sri Lanka. If not, all the effort to economic recovery will fail again and the power goes back to home.
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nimal fernando / November 13, 2025
One major reason omitted in these discussions …… what made it easy/possible for whoever to rescue the economy is ……. we don’t have to pay back our debt/loan commitments for some time, that money is available to the country to spend on more pressing needs. When a country is declared bankrupt …….. that’s the reason why ……. it gets breathing space to recover. If I’m not mistaken our debt/loan commitments reached 95% of income that’s why we went bankrupt unable to pay our loans/interest. The warning signs were there early on ….. when the rating agencies started downgrading.
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This happens to people as well ……. ask Donald, who was declared bankrupt 6 times …… now recovered …….. and running the US economy with the full approval of Ramona.
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If I’m not mistaken this lady’s husband who was in the dental faculty played politics with the Rajapakses to get positions – like Prof. Laksiri Fernando. They change colors like chameleons ……. to suit different political-times!
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All Lanka ever needed was few people who can have principles and stick to them.
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