Karunanayake Blasts Central Bank and IMF Policies, Says Institutions Have 'Ruined Sri Lanka

Former Finance Minister Ravi Karunanayake has launched a fierce attack on Sri Lanka's Central Bank and the International Monetary Fund, declaring that their policies have been instrumental in bringing the country to its knees economically.

A Direct Accusation

Karunanayake did not mince words in his latest remarks, placing the blame for Sri Lanka's prolonged economic suffering squarely at the feet of the Central Bank, which he accused of pursuing policies that have failed ordinary Sri Lankans. The veteran politician and former minister described the institution's conduct as a key driver of the island nation's financial collapse.

His comments come at a time when Sri Lanka continues to navigate a fragile economic recovery, heavily dependent on the conditions attached to an IMF bailout programme that has drawn both praise and criticism from across the political spectrum.

IMF Programme Under Scrutiny

Karunanayake also directed sharp criticism toward the IMF, questioning whether the conditions tied to the country's rescue package have genuinely served the interests of the Sri Lankan people. He suggested that the policies being implemented under external guidance have placed an undue burden on citizens who are still struggling to recover from the worst economic crisis in the country's post-independence history.

The remarks reflect a growing unease among certain political figures regarding the direction of Sri Lanka's economic reform agenda, particularly as austerity measures and tax increases continue to affect household incomes across the island.

A Broader Political Context

Karunanayake, who served as Finance Minister during the previous United National Party-led administration, has been a consistent voice on economic matters in Sri Lanka. His latest statements are likely to resonate with segments of the public who remain deeply frustrated with the pace of recovery and the conditions under which foreign financial assistance has been secured.

Critics of the IMF programme argue that while macroeconomic indicators may be stabilising, the social cost of the reforms has been disproportionately borne by low and middle-income Sri Lankans. Supporters, however, maintain that the programme remains essential for restoring fiscal discipline and long-term economic stability.

As debate around Sri Lanka's economic future intensifies, statements such as those from Karunanayake are expected to fuel further public and parliamentary discussion on the role of both domestic institutions and international financial bodies in shaping the country's path forward.

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