## 📈 Reflections on 78th Independence Day: Stability vs. Stagnation

Sri Lanka marks its 78th Independence Day today at Independence Square, with President Anura Kumara Dissanayake presiding over a nation reflecting on decades of post-colonial progress and systemic failure. While the ceremony proceeds with official pomp, the country remains at a critical crossroads. • Economic Landscape (Provisional 2026) GDP Growth: Projected at 4.0% – 5.0% for 2026, supported by recovering macroeconomic buffers. Inflation: January 2026 headline inflation recorded at 2.3%, with a target of 5.0% by year-end. Official Reserves: Surpassed US$ 6.8 Bn by end-2025, the highest post-crisis level. Debt Sustainability: Debt-to-GDP ratio projected to decline to 96.8% in 2026 from 114.2% in 2022. • Sectoral Highlights & Challenges Governance: The National People’s Power (NPP) government, one year into its term, faces high expectations to dismantle corruption and address poverty (24.5% rate) and social inequality. Public Services: Focus remains on preserving the legacy of free education and health care, despite dwindling public sector efficiency. Infrastructure: Budget 2026 allocates Rs. 91.7 Bn for irrigation and Rs. 11 Bn for state medical faculties. • Current Sentiment The 2026 celebrations are characterized by "minimal cost" budgeting (approx. Rs. 100 Mn) and a focus on national unity. However, public skepticism remains high as the administration grapples with implementing "system change" amidst ongoing strikes and socio-economic burdens.