Sri Lanka needs 'big bang' reforms to secure recovery – Economist

Dr. Ganeshan Wignaraja explains why gradual reforms won't work Says post-crisis stabilisation has opened narrow reform window Urges decisive action on regulation, energy costs and productivity

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ODI Senior Fellow Dr. Ganeshan Wignaraja - Pic by Shehan Gunasekara

(Shehan Gunasekara)

SRI Lanka must pursue a “big bang” reform agenda to convert its post-crisis stabilisation into durable, investment-led growth, ODI Senior Fellow and former Asian Development Bank Institute Research Director Dr. Ganeshan Wignaraja said, warning that incremental reform would leave the economy exposed to renewed shocks.

Delivering the keynote address at the Asia Securities Investor Conference 2026, Dr. Wignaraja said Sri Lanka’s recent recovery, while credible, remained cyclical and vulnerable to renewed shocks.

“Gradual reform is useful, but I now think more and more that we have to do a big bang set of reforms,” he said. “Our system has only allowed for gradual reforms, normally two steps backwards and one step forward.”