New Delhi, Nov. 2 -- According to the 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 cost of living has reached to a very 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.

Flawed Fiscal Policy

When we analyze the 2026 first half GDP data (as shown below), we can observe that the ec...