Srilanka, Feb. 19 -- Since assuming power, the National People's Power Government has tried to strike a delicate balance between fiscal consolidation guided by the IMF reform formula and NPP's expansive campaign promises and election rhetorics. During the first four months in office, it played within the confines of the IMF programme, which was the mainstay of Sri Lanka's quicker-than-expected economic recovery. That not only helped assuage investor fears, but also managed to notch a higher-than-expected economic growth - though three-quarters of that was achieved during the term of its predecessor.

Anyone worried that economic prudence was temporary can sigh a breath of relief. The budget 2025 is a continuation of the same cautious app...