Sri Lanka, Oct. 28 -- According to latest official data the Sri Lankan economy grew by 4.7 percent during the first half of 2026. Although many analysts hail this as an indication of a stable economic recovery, some argue that economic recovery is hardly felt by ordinary citizens. A recent survey shows that only 25 percent of households in the country earn enough to cover their living expenses, suggesting that the cost of living has reached a high level amid inflation reaching above 8 percent. Hence there appears to be a clear disconnect between the official economic growth numbers and what ordinary citizens experience.

When we analyze the first half of the 2026 GDP data (as shown below), we observe that the economy has expanded by an o...