Improved economic performance, GDP growth, peace, and stability in Sri Lanka has led the IMF to change Sri Lanka’s status from “Poverty Reduction and Growth Trust” to “Middle Income Emerging Market,” an important landmark as the island nation makes its way down the path of development and reaps the benefits of peace.
The improvement in status is expected to further open up international capital markets for the country and bring attention from investors targeting emerging markets with strong projected growth. Sri Lanka reached this landmark just days before a highly competitive presidential election between two of the architects of the current peaceful era in Sri Lanka: Current President Mahinda Rajapaksa who stood firm in the face of international opposition and brought the country to the end of a long drawn civil war and the unlikely opponent General Sarath Fonseka, largely credited as the military mastermind of the end of the war, without whom the conflict may still be ongoing.
President Rajapaksa who has faced charges of corruption since the end of the war will hope that his rural power base will help him overcome a strong opposition alliance that has stood firmly behind General Sarath Fonseka. The result of the election of the 26th should be interesting and will hopefully set Sri Lanka up for an era of political stability as well, regardless of the winner.
President Mahinda Rajapaksa
General Sarath Fonseka
Sri Lankan at the Stanford GSB 