Economic Growth Has Stalled While Poverty and Youth Unemployment Continue to Bite, Warns GL Peiris

Sri Lanka's economic recovery is losing momentum, with inflation, youth unemployment and rising poverty continuing to weigh heavily on ordinary citizens, former Foreign Minister Professor G.L. Peiris warned on Wednesday.

Speaking at a media briefing organised by the People's United Opposition in Colombo, Prof. Peiris painted a sobering picture of the country's economic trajectory, cautioning that the gains made following the 2022 financial crisis were beginning to taper off at a time when many Sri Lankans are still struggling to make ends meet.

Growth Momentum Fading

The former minister stressed that while the government had pointed to early signs of stabilisation as evidence of a broader recovery, the reality on the ground tells a very different story. Economic growth, he argued, has slowed sharply and is failing to translate into meaningful relief for the public.

Sri Lanka's economic growth has slowed sharply while inflation, youth unemployment and poverty continue to put pressure on the public.

Key Concerns Raised

• A notable deceleration in economic growth, raising doubts about the sustainability of the recovery.
• Persistent inflationary pressures continuing to erode household purchasing power.
• High levels of youth unemployment leaving a generation of Sri Lankans without stable livelihoods.
• Deepening poverty affecting a significant portion of the population.

Prof. Peiris, a senior figure within the opposition, used the platform to call attention to what he described as a disconnect between official economic narratives and the lived experiences of Sri Lankan families across the country.

The People's United Opposition has been increasingly vocal in recent weeks, challenging the government's handling of post-crisis economic management and demanding more concrete policy interventions to address the hardships faced by vulnerable communities.

The remarks are likely to intensify political debate around the government's economic stewardship as Sri Lanka continues to navigate its IMF-supported recovery programme.

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