Sri Lanka 2.0: From fragility to strategic strength

A few weeks ago, I had the pleasure of traveling through this beautiful country.

- By Nikolaos Sampatis

Within just a few days, I left with the unease of someone who had glimpsed both extraordinary potential and deep structural fragility. What struck me was a feeling of déjà vu; it was as if I were looking at my homeland, Greece, 15 years ago. A country in the arms of the IMF, in the midst of a massive crisis, yet a country with immense possibilities. I am taking the initiative, in my professional capacity as an economist, to propose certain strategies that I believe could help Sri Lanka assume the role it truly deserves.Pillar I: Fiscal consolidation and Investment Grade (The "Foundation")

As a professional active in Switzerland who carries the lived experience of the Greek crisis, I know well that growth is not the first step; credibility is. Sri Lanka must move out of the "Default" category and aim for "Investment Grade" status within seven years. Without this, every other reform will remain a theoretical exercise.

Restoring Market Trust: "Sri Lanka 2035" begins by winning back the markets. Unless we convince agencies like Moody's and SandP, capital will remain prohibitively expensive.

Fiscal Rule: A constitutional limit on the deficit can be established. International creditors need a guarantee that the fiscal slippage of the past will never be repeated.

SOE Reform and The "Temasek Model": The fact that 80% of revenue is spent on public sector salaries and interest payments is unsustainable. I propose the creation of an independent State Investment Fund (similar to Singapore's Temasek). All loss-making entities (SriLankan Airlines, CEB) should be transferred there, managed by technocrats with international experience, and given a three-year window to become profitable or be privatised.