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Prime Minister vows swift recovery, policy continuity

Daily FT

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December 03, 2025

PRIME Minister Dr. Harini Amarasuriya yesterday delivered an unvarnished account of the scale of destruction caused by the recent cyclone and flooding, while assuring the business community that the Government's reform agenda and economic stabilisation path will not be derailed.

- BY CHARUMINI DE SILVA

Speaking during a fireside chat at the Sri Lanka Economic Summit organised by the Ceylon Chamber of Commerce, the Premier outlined the immediate humanitarian challenges, the extensive infrastructure damage, and the medium-term strategies to normalise lives, restore livelihoods and accelerate structural reforms.

"This catastrophe cannot push us away from the path we have set. It must strengthen our resolve," she said.

Dr. Amarasuriya added that despite the shock, the Government remains committed to the growth path outlined in the Budget 2026, anchored on six key pillars driving the medium-term vision which include inclusive growth, export diversification, sustainability in policy, production economy, rural development, and digital transformation.

"The 7% GDP growth target for 2026 remains intact. However, given the circumstances, it will be subjected to adjustments as new data emerges," she added.

Addressing questions on whether the disaster would delay key structural improvements and legislations such as State-owned enterprises (SOE) reforms, trade facilitation measures, digitalisation and the single-window platform for investment, the Prime Minister was unequivocal.

"These are not optional extras. If we are to recover quickly, we need the right policy environment. None of these reforms will be postponed. In fact, some will move faster," she said.

Responding to concerns from industry leaders, Dr. Amarasuriya insisted that Sri Lanka's tourism sector will remain central to economic recovery.

She stressed that tourist arrivals during the season should not be hindered, and urged travellers to continue visiting Sri Lanka, noting that the South and East coasts were largely unaffected and many affected areas would recover within weeks.

"This is when we need you the most," she said, calling on international visitors not to cancel, but to adapt travel plans where necessary.

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