The United States has reaffirmed its support for the people of Sri Lanka in their efforts to build “an inclusive, just, democratic, and economically sustainable future,” according to Senator Ben Cardin, Chair of the Senate Foreign Relations Committee.
This statement comes as Sri Lanka continues to recover from a devastating economic crisis in 2022, which was triggered by a severe currency collapse following the central bank’s controversial monetary policies. The crisis occurred after the central bank printed money to target ‘potential output’ without a proper economic framework, leading to a sharp decline in the country’s financial stability.
Senator Cardin acknowledged the commitment of Sri Lankan citizens to democracy, as seen in the recent presidential election that brought Anura Kumara Dissanayake, leader of the National People’s Power coalition, to power. Dissanayake’s election is seen as a pivotal moment in Sri Lanka’s recovery, following the economic disaster that unfolded under previous administrations.
“Millions of Sri Lankans peacefully exercised their democratic right in this weekend’s presidential election, demonstrating a deep and meaningful commitment to shaping their country’s path forward,” Cardin said in his statement.
“As President-elect Anura Kumara Dissanayake takes office, his administration faces the urgent task of addressing the devastating, man-made 2022 economic crisis and advancing genuine progress in governance, anti-corruption, human rights, and accountability for past injustices,” he added.
While offering continued US support, Cardin emphasized the need for the new government to focus on rebuilding the economy and ensuring lasting reforms.
Critics, however, have pointed out the historical role of international financial organizations, including the International Monetary Fund (IMF), in contributing to Sri Lanka’s economic challenges. The IMF had previously advised the country on economic growth strategies that led to inflationary practices and monetary instability. The 2022 crisis is often compared to the US “Nixon shock” of 1971, highlighting the impact of flawed macroeconomic policies on both nations.
In the aftermath of Sri Lanka’s crisis, and ahead of Dissanayake’s election, the IMF provided technical assistance aimed at stabilizing the country’s financial policies. The central bank is expected to implement key reforms, including the removal of the last of the crisis-induced import controls by early 2025.
As Sri Lanka moves forward, the US has pledged to stand by the nation as it pursues much-needed reforms in governance, economic stability, and social justice.