Srilanka, Nov. 23 -- In 2022, Sri Lanka became the first Indo-Pacific country in decades to default on its external debt, triggering an economic collapse that pushed millions below the poverty line. Inflation surged past 70 percent, foreign reserves plunged to nearly zero, food insecurity spread widely, and mass protests toppled the Government of former President Gotabaya Rajapaksa.
Fast forward to 2025, and the picture looks strikingly different. Inflation has turned negative, foreign reserves have more than doubled, and GDP growth rebounded to 4.5 percent in 2024. The International Monetary Fund's (IMF) US$3 billion Extended Fund Facility program, launched in March 2023, has passed three consecutive reviews, with Colombo meeting most fis...