📈 Governance Reform: The Missing Link in Sri Lanka’s Recovery

Sri Lanka’s economic stabilization depends on more than just debt restructuring; it requires a fundamental shift in how the State is trained to function. Experts warn that without systematic institutional training, reforms remain "performative" and fragile. • Core Issue: The economic collapse highlights a chronic failure in institutional literacy among elected officials. Governance must be treated as a professional discipline to ensure accountability and policy predictability—key factors for investor confidence. • Training the State: The Institute of Democracy and Governance (IDAG), founded by former Speaker Karu Jayasuriya, recently concluded executive programs for over 300 participants, including members of parliament and local representatives. • Program Focus: • Constitutional mandates and parliamentary procedure. • Ethical decision-making and accountability. • "Institutional discipline" to ensure systems survive political turnover. • Market Impact: For international investors and the ICT/BPM, apparel, and tea sectors, institutional competence is "governance infrastructure." Stability depends on officials who understand the rules of the system, reducing the volatility that often follows leadership changes. • Strategic Outlook: Recovery will be judged by whether institutions perform reliably over the next 5–10 years. Strengthening the State's capacity is viewed as a critical "hard" reform necessary to break the cycle of crisis and disappointment.