Mahinda Siriwardana, Secretary to the Treasury, reflected on Sri Lanka’s journey from economic turmoil to a path of recovery. Marking three years since his appointment and the release of his book, Sri Lanka’s Economic Revival: Reflections on the Journey From Crisis to Recovery, he provided a candid account of the events that led to the country’s financial collapse and the ongoing reforms to rebuild the economy.
Siriwardana described how, during his tenure as Deputy Governor of the Central Bank of Sri Lanka (CBSL), he had a front-row seat to the early signs of the economic downturn. “My involvement with this crisis goes beyond the last three years,” he explained. “In the period leading up to the collapse, I observed firsthand the emerging risks and repeatedly cautioned CBSL leadership.” Despite his efforts, those warnings were overlooked, which allowed the crisis to escalate.
He lamented the absence of direct communication channels between mid-level financial officials and the political leadership or the public, a gap that hindered early intervention. “A disaster that was preventable ultimately became unavoidable,” Siriwardana remarked, expressing regret over the missed opportunity for timely action.
Upon assuming the role of Treasury Secretary in April 2022, he prioritized transparency and open dialogue with both government leaders and the public. He emphasized the importance of openly acknowledging the nation’s economic challenges, the roadmap for reforms, and the obstacles that still lie ahead.
Commenting on the broader global context, Siriwardana noted the significance of staying alert to global policy shifts, particularly in light of recent economic decisions in the United States. He stressed that while some external shocks may be unforeseeable, what remains within control is the country’s commitment to disciplined macroeconomic strategies, strengthening external financial reserves, and focusing on non-debt creating revenue sources.
He further highlighted the need for a unified national effort across both the public and private sectors to create a more favorable business environment. Siriwardana urged reforms to simplify regulations, boost trade, support emerging sectors, and promote innovation. “We must modernize our practices, explore untapped markets, and embrace innovation to enhance exports and build economic resilience,” he stated.
He also warned that global trade developments—such as changes in U.S. tariff policy—serve as a critical reminder for Sri Lanka to accelerate long-overdue reforms. Delays, he said, could leave the nation vulnerable to future economic shocks.
Sri Lanka’s Path to Economic Revival:Despite the dire state of the economy at the height of the crisis—marked by fuel shortages, soaring inflation, and a sovereign default—Sri Lanka has since taken significant steps toward revival. These included securing an International Monetary Fund (IMF) bailout, restructuring foreign debt, implementing fiscal discipline, and enhancing transparency. Public sector reforms, increased focus on tourism and remittances, and efforts to boost exports have begun yielding positive results. Through coordinated reforms and strong leadership, Sri Lanka is now on a more stable footing, gradually restoring investor confidence and moving toward long-term sustainability
