Sustained Reforms Are Vital to Shield Sri Lanka from Future Crises
Sri Lanka must adopt far-reaching economic reforms to convert its post-crisis stabilisation into long-term, investment-led growth, ODI Senior Fellow Dr. Ganeshan Wignaraja said at the Asia Securities Investor Conference 2026.
He warned that the country’s recovery following the 2022 default remains fragile and vulnerable to renewed shocks, arguing that gradual reform has repeatedly failed to deliver resilience. According to him, decisive “big bang” reforms are needed to address structural weaknesses and restore investor confidence.
Dr. Wignaraja said the IMF-supported programme, emergency financing, and strong monetary policy helped prevent a deeper crisis, but stabilisation alone is not enough. He highlighted Cyclone Ditwah as a reminder of Sri Lanka’s exposure to climate shocks, with damages estimated at nearly 4% of GDP.
He called for a credible reconstruction strategy, improved revenue mobilisation, reduced red tape, and productivity-enhancing reforms, warning that without bold action Sri Lanka risks returning to debt distress.
