‘Not Everything Gets Fixed Overnight’: Gopinath on Sri Lanka’s Road to Recovery

COLOMBO (News 1st); Amid growing public concern over the impact of IMF-backed reforms in Sri Lanka, the Fund’s First Deputy Managing Director, Dr. Gita Gopinath, has defended the program, citing significant improvements in key economic indicators.

In an exclusive interview with News 1st’s Zulfick Farzan, Dr. Gopinath addressed the perception that IMF measures are deepening hardship rather than aiding recovery.

"I think the facts would be contrary to that," she said. "Inflation has fallen dramatically—from a staggering 70% to negative 0.7%. Economic growth, which had been in decline for two consecutive years, rebounded to 5% last year and is projected at 3.5% this year."

She emphasized that these figures reflect a stabilizing economy, not one in decline. Dr. Gopinath also highlighted the importance of Sri Lanka’s recent debt restructuring, calling it a vital step in softening the blow of economic adjustments.

However, she acknowledged that challenges remain: "Not everything gets fixed overnight. More reforms are needed. People need to feel their living standards are improving."

Looking ahead, Dr. Gopinath urged a pivot toward long-term development goals: "I think now is when we should start focusing on recovery, on growth, on making sure that there is ease of doing business, and making sure that there is good governance. So that there's more investments happening in Sri Lanka, more jobs being created, and the poverty rate which is too high at 24.5%, comes down."."