Many nations have seen mass protests against corruption, a change of government, and then … very little lasting transformation. Not so in Sri Lanka. Since 2022, when protests in the island nation ousted a corrupt ruling clique, public demands for integrity in government have led to the election of a reformist president – and much more.
Last week, the International Monetary Fund gave high approval to the reforms in Sri Lanka by releasing $334 million in aid, just one part of a nearly $3 billion package negotiated in 2023. The IMF move didn’t just reward Sri Lanka for reaching economic and fiscal benchmarks. It also affirmed progress toward norms of democratic accountability and transparency.
Since 2022, citizen activists have pushed to include such requirements in IMF economic bailout packages. As a result of this pressure from civil society, Sri Lanka is the first country in Asia for which the IMF has required governance reforms as an explicit condition of debt restructuring. In early April, the country met one more requirement by passing a law allowing the government to seize property linked to a crime, a key tactic in deterring corruption.
The new president, Anura Kumara Dissanayake, or AKD, as he is called, has had to work hard to win the trust of people disenchanted with government. He ran on the promise of a corruption-free “clean Sri Lanka,” a country where citizens could live “a fulfilling … honorable … dignified life.”
However, while hailing Sri Lanka’s “macroeconomic turnaround [as] remarkable,” even IMF officials acknowledge that “Many households are yet to feel the impact.” Mr. Dissanayake agrees. “We cannot allow the lives of our citizens to stagnate until economic stability is fully achieved,” he said.
For now, AKD is well positioned to continue advancing good governance and systemic change: A February poll put satisfaction with government performance at 62%, a quantum leap from the 5% rating for his predecessor.
His calls to uproot political opacity and patterns of patronage resonated widely, especially with youth. (Feeling their futures had been squandered by previous regimes, young people led many of the 2022 protests.) His administration has already reduced multiple ministerial perks and plans more cuts. With a listening attitude, it permitted lengthy parliamentary debate on the recent national budget, paying heed to opponents’ concerns.
The 23 million people of Sri Lanka are not so much following their president as leading him. They are acting on their faith in democratic transformation. The IMF could not help but listen.
