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flag Sri Lanka’s 2026 growth is temporary, driven by reconstruction and spending, not lasting economic reform.

flag Sri Lanka’s 4–5% projected 2026 growth, driven by post-cyclone reconstruction and public spending, is seen as a stabilization milestone rather than a sustainable growth strategy. flag While improved reserves and lower inflation signal financial stability, the growth is temporary and demand-driven, boosting short-term jobs and construction without enhancing productivity, exports, or industrial capacity. flag Experts warn reliance on reconstruction risks increasing import dependence and trade deficits, undermining long-term resilience. flag Without a clear plan to boost domestic production, innovation, and global competitiveness, growth may stall after the recovery phase, leaving the economy vulnerable to past cycles of instability.

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