Sri Lanka’s broken promise! Nearly a half a century later, now Sri Lanka is facing an unprecedented economic, social and environmental crisis. The “open economy” introduced in 1977 marked a decisive break from Sri Lanka’s closed, state‑dominated system. Policy reversalsThe third factor shaping Sri Lanka’s open‑economy reform process can be seen across two distinct periods: 1995–2005 and post‑2005. Ultimately, the IMF reform agenda laid bare this reality: eliminating corruption vulnerabilities was a pre‑condition for unlocking Sri Lanka’s growth potential.

Source: Sunday Times February 08, 2026 07:09 UTC