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Sustaining Transformative Growth in Sri Lanka (2025, 2030) A Policy Blueprint for Inclusive and Durable Recovery
From left: Dr. Dirk Willem T. Velde, Dr. Ganeshan Wignaraja, and Yvette Fernando presenting the edited version of Sustaining Transformative Growth in Sri Lanka (2025–2030).The book titled “Sustaining Transformative Growth in Sri Lanka (2025–2030)”, jointly produced by ODI Global and the Centre for Poverty Analysis (CEPA), was officially launched on 8 January 2026 at the Sri Lanka Foundation in Colombo, under the patronage and participation of the book’s eight authors.
Sri Lanka stands at a critical crossroads. Having emerged from its worst economic crisis since independence, the country now faces the dual challenge of sustaining hard-won macroeconomic stability while igniting transformative growth. This report provides a timely and evidence-based roadmap for navigating this complex transition. While recent stabilisation efforts have delivered encouraging outcomes—including renewed economic growth and a sharp reduction in inflation, poverty levels remain alarmingly high, underscoring the limits of stabilisation without deeper reform.
The study argues that continued structural reforms are essential to prevent future crises and unlock Sri Lanka’s long-term development potential. It identifies six interlinked policy priorities: maintaining macroeconomic stability; integrating more effectively into global supply chains; improving factor markets such as labour, land and capital; implementing targeted sectoral policies; accelerating poverty reduction; and building political and social consensus for reform. Through coordinated action across these areas, Sri Lanka can capitalise on opportunities in tourism, the digital economy, niche manufacturing, and agriculture to achieve sustainable and inclusive growth between 2025 and 2030.
The book is authored by a group of leading economists and policy practitioners: Dr. Sirimal Abeyratne, Dr. Chandranath Amarasekara , Raveen Basnayake , Dr. Indrajit Coomaraswamy, Yvette Fernando , Dr. Dirk Willem T. Velde, Asela Wijesinghe, and Shiya Wickramasinghe and Dr. Ganeshan Wignaraja.
Commenting at the launch, Dr. Sirimal Abeyratne, Executive Director of CEPA, stated “Sri Lanka’s challenge is not simply to return to growth, but to secure growth that is transformative in nature—one that reshapes the structure of the economy, creates productive employment, and delivers tangible improvements in living standards. This book outlines a realistic and coherent policy direction for the critical 2025–2030 period.”
The report emphasises that the coming years represent a narrow but decisive window of opportunity for Sri Lanka. Locking in reforms, strengthening institutions, and fostering collaboration between the state, private sector, and civil society will be crucial to placing the economy on a more resilient, equitable, and future-ready growth path.
The government, under heavy Opposition fire over inclusion of a sex website in the Grade 6 English module, as well as overall education reforms, has decided to put on hold reforms in respect of Grade 6.
Cabinet Spokesman and Media and Health Minister Dr. Nalinda Jayatissa announced the government decision yesterday (13) at the post-Cabinet media briefing at the Information Department.
According to him, the decision had been taken at the previous day’s Cabinet meeting, chaired by President Anura Kumara Dissanayake. Dr. Jayatissa said that education reforms pertaining to Garde 6 had been put on hold until 2027.
The Minister said that other proposed education reforms would be implemented as planned. The Minister said that action would be taken against those responsible for the inclusion of a link to a sex website following investigations conducted by the Criminal Investigation Department and the National Education Institute.
The SJB and several other political parties, as well as civil society groups, have accused the government of promoting an LGBTQ agenda, through the proposed education reforms.
The Opposition grouping Mahajana Handa, on Monday, made representations to the Mahanayake Thera of the Malwatta Chapter regarding the controversial reforms, while urging their intervention to halt the project.
President Anura Kumara Dissanayake yesterday (13) vowed to go ahead with his government’s agenda, regardless of the destruction caused by Cyclone Ditwah.
Emphasising the responsibility on the part of all to contribute to the post-Ditwah recovery efforts, President Dissanayake said that he would have complete faith in the public service.
The President said so at the launch of the re-building Sri Lanka project at the BMICH yesterday.
The JVP and NPP leader said that he wouldn’t take advantage of the death and destruction caused by the cyclone or use the situation as an excuse to reverse their agenda or weaken it.
President Dissanayake said that in spite of many calling for amending the then Budget, in view of the cyclone, the government presented the proposals that were agreed before the disaster struck.
The United States has announced that it will provide the Sri Lanka Air Force with 10 US Navy TH-57 helicopters free of charge.
The announcement was made by outgoing US Ambassador Julie Chung, who stated, on social media, that the helicopters would be transferred under the United States’ Excess Defence Articles programme. The aircraft are Bell 206 Sea Ranger helicopters previously operated by the US Navy.
US sources said that the transfer was intended to strengthen Sri Lanka’s disaster response capabilities, following the devastating cyclone that struck the island at the end of 2025 and killed more than 600 people. US officials have framed the move as a humanitarian measure aimed at improving aerial rescue and relief operations.
Fair weather will prevail except for a few showers in the Uva, Eastern, Western and Central provinces and in Galle, Matara and Rathnapura districts
Trump cancels US-Iran meetings, urges protesters to take over institutions
Govt. bows to pressure, shelves Grade 6 reforms
AKD: Govt. agenda on track despite Ditwah disaster
SL to receive 10 helicopters from US
Foreign couple held over alleged biopiracy at Horton Plains
‘Dates have the highest sugar content to fight Coronavirus’
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