Three years after its financial collapse, Sri Lanka has seen fuel shortages ease and inflation drop, signalling a turnaround. Economic growth has resumed and tourism is booming, boosted by IMF-backed reforms praised by international lenders. However, high public debt and weak investment remain, meaning full recovery is still uncertain. The country must now focus on structural transformation to sustain growth.
Three years after its financial collapse, Sri Lanka has seen fuel shortages ease and inflation drop, signalling a turnaround. Economic growth has resumed and tourism is booming, boosted by IMF-backed reforms praised by international lenders. However, high public debt and weak investment remain, meaning full recovery is still uncertain. The country must now focus on structural transformation to sustain growth.