President pledges economic sovereignty by 2028

• Affirms commitment to completing current IMF program as the last at ‘Sri Lanka’s Road to Recovery: Debt and Governance’ conference
• Says economic sovereignty impossible without financial independence; restoring it requires bold reforms
• Outlines roadmap for recovery with deeper public sector reforms, SME relief, FDI incentives and economic expansion
• Acknowledges sacrifices made by public during crisis recovery;  opines surface-level stability is not enough
• Cites urgent need to reform inefficient and corrupt public institutions; vows to restructure or dissolve obsolete SOEs
• Emphasises cost-reflective pricing in sectors like energy, with safety nets for vulnerable groups
• Calls social protection a matter of humanity, justice and fairness
• Admits failure to attract FDIs historically; commits to strategic incentives and better investor environment
• Notes over 90% of SMEs failed due to crisis, not mismanagement
• Stresses need for economic expansion, rural inclusion

President Anura Kumara Disanayake

President Anura Kumara Disanayake yesterday pledged to build a stable economy by 2028, with sufficient growth to service debt independently.

Delivering the keynote address at a high-level conference titled ‘Sri Lanka’s Road to Recovery: Debt and Governance’ attended by International Monetary Fund (IMF) First Deputy Managing Director Dr. Gita Gopinath, Disanayake affirmed commitment to completing the IMF’s Extended Fund Facility (EFF) program as planned, asserting it would be the country’s final reliance on financial bailouts.

“A country cannot maintain sovereignty where the economy has collapsed. A nation cannot retain independence when its economy is in ruin. Whether we like it or not, we have already lost a degree of our sovereignty and independence. Therefore, the ultimate outcome must be the restoration of our national sovereignty and self-reliance. This requires a strenuous and unwavering effort,” he emphasised.

He laid out a sweeping roadmap for Sri Lanka’s economic recovery, calling for deeper reforms in the public sector, targeted social protection for vulnerable groups, extending strategic benefits to woo foreign direct investments (FDIs), extending relief to small and medium enterprises (SMEs), and renewed commitment to regional economic expansion. 

“In pursuing that, I expect the commitment of the political leadership, the responsibility of public officials, and the cooperation of the people,” he said.



Disanayake attributed the macroeconomic stability to hard-won reforms and difficult decisions, including successful debt restructuring, improved State revenues, and boosted foreign reserves. 

The President said the greatest contribution to the economic recovery came from the public, who bore the brunt of these reforms. 

“They made immense sacrifices and endured hardships to help rescue the nation from this crisis,” he acknowledged.

However, Disanayake cautioned that the deep wounds of the crisis have not yet healed. 

“Although surface-level stability has been established, it is imperative to further solidify this stability and to elevate the economy to a higher level. This requires the implementation of new reforms and transformations within the economic system,” he stated.

Disanayake emphasised that stability must now be a platform for transformation and not for complacency. 

Among the most urgent challenges, he said, is the unsustainable cost of the public sector.

“We need a strong public service, but our current expenditure is excessive. Some institutions are obsolete. They must be closed or restructured,” he said.

The President also cited overlapping mandates, inefficiency, and rampant corruption as long-standing issues, which he characterised for the economic crisis. 

“Recent news reports highlight the depth of the current crisis: the Inspector General of Police is in hiding; the Commissioner General of Prisons has been imprisoned; officers from the Department of Motor Traffic and the Department of Immigration and Emigration have been arrested. This raises serious concerns about the plight of our State institutions. Corruption is not merely about immediate transactions, it results in vital projects being neglected and unnecessary ones being implemented, which continue to burden us today,” he pointed out.

He pledged to clean up public sector institutions to eradicate inefficiency, bribery, and corruption. 

Asserting some oversight in key sectors which are sensitive to the economy, such as energy and finance, he made it clear that loss-making State-owned enterprises (SOEs) would not be maintained for the sake of it burdening the taxpayers. 

Disanayake underscored the principle of cost-reflective pricing, particularly for energy, whilst also assuring targeted safety nets for vulnerable communities.

“When we implement economic reforms and await the benefits to reach the people, we cannot simply ask them to endure the hardship in silence. The State must provide relief to these groups during this transitional period. This is the responsibility of a just Government,” he said.

The President said economic development while abandoning these vulnerable groups is futile. 

“This is a question of humanity, justice and fairness. We therefore support a policy of providing well-targeted assistance to vulnerable communities. This assistance is not to be politicised. We view it as a matter of social justice and social protection. I assure you, our Government will never use social protection schemes for political gain,” he said.

Addressing the country’s chronic struggle to attract FDIs, Disanayake admitted that Sri Lanka must offer strategic relief to investors. “For decades, we have failed to attract sufficient FDIs due to the prevailing global and local economic conditions—this must change. However, the challenge of attracting investment does not come from a place of economic strength, but from rebuilding after collapse,” he noted. 

Given the current context, the President emphasised the need to focus on creating a more attractive environment for investment, in consultation with the IMF. 

Disanayake also claimed over 90% of SMEs collapsed not due to mismanagement, but due to the broader crisis, calling for targeted relief to restore local enterprises and integrate rural populations into the national economy.

He also said while economic growth is important, economic expansion is equally critical.

“Rural communities have become marginalised and excluded from the mainstream economy. While urban economic indicators may appear positive, they do not reflect the realities of those left behind. For economic growth to deliver real benefits to the people, economic expansion must be pursued,” he added.