Overview Sri Lanka

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Before the 2024 election, Sri Lanka’s political transformation was shaped by the on-going restrictions on civil liberties and tensions between the executive branch and the judiciary under former President Ranil Wickremesinghe. The presidential election in 2024 led to a second-round vote, which was won by Anura Kumara Dissanayake from the National People’s Power movement. After taking office, President Dissanayake dissolved parliament, and the National People’s Power secured a majority in the subsequent parliamentary elections.

Sri Lanka’s economy stabilized due to the IMF extended fund facility which provides financial assistance to states in economic hardship to initiate economic reform. Macroeconomic conditions improved after significant volatility, although a full recovery remains uncertain.

The IMF governance diagnostic linked the crisis to structural governance failures. The government adopted a reform plan and implemented several conditionalities, including anti-corruption legislation and discal governance, but key recommendations remained only partially implemented. 

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