Good Governance As The Pathway To Sri Lanka’s Prosperity

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By Matara Gunapala –

Dr. Matara Gunapala

Sri Lanka’s recent history shows how good governance affects sustainable development and enduring prosperity. Economic crises, a loss of public trust, institutional decline, and social unrest reveal this central truth: economic growth without ethical and effective governance remains unstable and exclusionary. Prosperity not grounded in good governance ultimately collapses under the weight of corruption, inefficiency, and injustice.

The United Nations Office on Drugs and Crime (UNODC) defines good governance as the process by which public institutions conduct public affairs and manage public resources in accordance with the rule of law, human rights, transparency, accountability, and inclusive participation [1]. In modern democratic societies, good governance is a vital link between economic progress and social justice. It ensures that public authority is exercised ethically, responsibly, and in the collective interest rather than for personal or political gain.

Good governance is more than administrative competence. It is the state’s moral foundation. Its core principles – accountability, transparency, participation, responsiveness, rule of law, effectiveness, efficiency, equity, inclusiveness, consensus-building, ethical leadership, and strategic vision – are deeply interconnected. When these principles work together, democratic ideals are translated into practical realities, and power is preserved as a public trust.

Amartya Sen conceptualises governance as an essential component of freedom, arguing that transparency, participation, and institutional accountability empower citizens to act as agents of development rather than as passive beneficiaries [2]. Daniel Goleman similarly emphasises that emotional and moral intelligence are prerequisites for ethical leadership and healthy organisational cultures [3]. Within this framework, Sri Lanka’s reform agenda, particularly in the aftermath of economic collapse and natural disasters such as Cyclone Ditwah, must be understood as both administrative restructuring and moral renewal.

Sri Lanka is endowed with a strategic maritime location, rich biodiversity, and a vibrant cultural heritage. Yet these advantages have been repeatedly undermined by weak governance, the politicisation of institutions, systemic corruption, and policy inconsistency [4]. Sustainable prosperity will not emerge from political rhetoric or reliance on foreign aid, loans, or donations. It will arise from the deliberate establishment of effective, ethical, transparent, and citizen-centred governance.

Accountability: Restoring Institutional Credibility

Accountability is the cornerstone of democratic legitimacy. It requires that those who exercise public power be accountable for their actions and face consequences for abuses of authority. In Sri Lanka, decades of political misconduct and administrative corruption have gravely undermined institutional credibility. Widespread corruption across multiple levels of government has eroded public confidence, discouraged investment, and constrained economic growth, directly affecting the standard of living of ordinary citizens.

To reverse this erosion, accountability must be strengthened through constitutional, institutional, and cultural reforms. Oversight bodies such as parliamentary committees, audit institutions, and anti-corruption commissions must operate with genuine independence, adequate resources, and protection from political interference. The current government’s stated commitment to strengthening these mechanisms is encouraging, but sustained political will remains essential.

Mandatory asset declarations, enforceable conflict-of-interest laws, and effective implementation of the Right to Information Act are critical tools. However, accountability must extend beyond procedures. It must be embedded in the values of public service. When transparency and answerability are seen as civic duties rather than administrative burdens, integrity becomes institutionalised. Only through such cultural transformation can Sri Lanka restore trust and build a stable foundation for sustainable development.

Transparency: The Lifeblood of Democratic Governance

Transparency is both a democratic right and a practical instrument of good governance. It enables citizens to access accurate, timely information, thereby enabling informed participation and meaningful scrutiny. Sen’s notion of “development as freedom” places transparency at the heart of empowerment and collective progress [2].

Sri Lanka’s recent experience highlights the high cost of opacity. Undisclosed loan agreements, non-transparent procurement processes, and secretive infrastructure contracts have contributed to unsustainable debt and weakened fiscal sovereignty. Strengthening transparency through open data portals, e-procurement systems, and public disclosure of budgets and policy decisions is therefore essential.

Proactive transparency, in which institutions voluntarily publish information, builds trust and encourages collaborative governance. Moreover, transparency enhances policy stability. Open deliberation attracts expert input, public debate, and shared ownership, reducing the likelihood of abrupt policy reversals. Thus, transparency not only deters corruption but also improves the quality and predictability of governance.

Participation: Democracy Beyond Elections

Participation extends democracy beyond the ballot box into everyday governance, enabling citizens to influence policy formulation, monitor implementation, and evaluate outcomes. In Sri Lanka, democratic engagement has historically been concentrated around electoral cycles, while policymaking has remained largely elite-driven. This imbalance has contributed to public alienation and the weakening of accountability mechanisms.

A renewed governance framework would therefore benefit from strengthening participatory institutions, including local government bodies, citizen forums, and digital consultation platforms. Media freedom and judicial independence are critical preconditions for meaningful participation, as they promote transparency, enable dissent, and provide institutional oversight. Emerging civil society initiatives, including programmes such as Clean Sri Lanka, demonstrate the potential of participatory approaches to enhance public trust and institutional legitimacy.

Participation is also relevant to addressing crime and corruption. Mechanisms that encourage public reporting of drug trafficking and organised crime, when supported by appropriate safeguards, can enhance law enforcement effectiveness and position citizens as active stakeholders in public safety. More broadly, embedding participation within a pluralistic framework that respects Sri Lanka’s religious and cultural diversity can promote inclusive engagement across communities and national unity.

Responsiveness: Strengthening Public Trust

Responsiveness ensures that governance translates into tangible outcomes. It requires governments to address citizens’ needs efficiently and adapt services to evolving demands. In Sri Lanka, bureaucratic inertia and inefficiency have often undermined responsiveness, eroding public trust.

Public institutions must adopt systematic feedback mechanisms, service audits, and performance-based evaluations to ensure effective governance. Continuous professional development and on-the-job training are essential to modernise the public service and cultivate empathy, responsibility, and ethical conduct. A responsive state is not merely efficient; it is also attentive to the dignity and well-being of its citizens.

Rule of Law: The Moral Architecture of the State

The rule of law is the moral backbone of good governance. It ensures equality before the law, impartial justice, and protection against arbitrary power. Sri Lanka’s legal system has long been undermined by political interference and selective enforcement.

Recent judicial actions against high-profile individuals indicate progress, but consistency remains crucial. As Hoole warns, symbolic prosecutions without systemic reform risk undermining public confidence [5]. Justice must be predictable, impartial, and depersonalised.

Addressing historical injustices, particularly those affecting the Tamil and Catholic communities, is also essential. Truth, accountability, and reparative justice are prerequisites for reconciliation and national unity. Without justice, neither social stability, a law-abiding nation, nor sustainable prosperity is possible.

Effectiveness and Efficiency: Governance That Delivers

Effectiveness and efficiency translate principles into performance. Sri Lanka’s bloated bureaucracy and politicised appointments have long impeded the public service, the engine of the state. Reform must focus on merit-based recruitment, continuous training, and depoliticised evaluation.

Evidence-based policymaking is critical. Poorly planned infrastructure projects (e.g., accelerated development initiatives that contributed to environmental and disaster risks, as highlighted during Cyclone Ditwah), economic bankruptcy, and eroded national discipline underscore the need for effective governance. Technological innovation, such as e-governance and data analytics, has transformative potential but must be implemented inclusively to avoid marginalisation and ensure that services are available from any state branch.

Decentralisation enhances efficiency by empowering local authorities to address community-specific needs. When citizens become co-producers of governance, efficiency becomes participatory and sustainable.

Equity and Inclusiveness: Justice in Distribution

Equity ensures that development benefits all citizens, not just political elites and their families. Sri Lanka’s history of excessive political privilege stands in stark contrast to widespread public hardship. Reducing such privileges is not punitive but restorative.

Inclusiveness must also extend to education, healthcare, employment, and political representation. Greater participation by women and minorities strengthens the legitimacy of governance. As the Ministry of Finance notes, inclusive development enhances innovation, resilience, and national cohesion [6].

Consensus and Strategic Alignment

Consensus-oriented governance transforms social diversity into a shared national vision. Sri Lanka’s history of ethnic polarisation underscores the imperative for inclusive, pluralistic decision-making grounded in compromise and mutual recognition. Strategic alignment, in turn, ensures that public policies, institutional reforms, and resource allocations converge towards a coherent long-term development trajectory. As Tennakoon observes, Sri Lanka’s strategic location along major global trade routes offers significant opportunities to capitalise on evolving international supply chains [4]. Realising this potential, however, requires deliberate diversification away from reliance on tourism and remittances towards sectors such as digital services, renewable energy, and value-added industries, all of which demand a coordinated national strategy. Central to this alignment is sustained investment in human capital. As Erasmus famously asserted, “the main hope of a nation lies in the proper education of its youth,” a proposition that remains profoundly relevant today. Curricula that foster critical thinking, civic responsibility, creativity, innovation, and research capacity are crucial for cultivating leaders who can navigate the complex governance challenges of the twenty-first century.

Ethical Leadership and Risk Management

Ethical leadership sets the moral direction of governance. Mahbubani attributes Singapore’s success to incorruptible leadership and disciplined institutions [7]. Sri Lanka’s leaders must model integrity, humility, and service. Ethical leadership, reinforced through institutions and civic education, makes corruption and indiscipline socially unacceptable.

Equally vital is risk management. Effective governance anticipates economic, environmental, and political risks before they escalate into crises. While the current government shows improved awareness, sustained vigilance is essential. Overconfidence and excessive centralisation could erode reform momentum. Sustainable prosperity demands adaptability, continuous evaluation, and humility.

Conclusion

Sri Lanka’s future will be shaped not merely by economic indicators but by the moral quality of its governance. Good governance is a covenant between the state and its citizens, grounded in accountability, transparency, justice, and ethical stewardship. Power in a democracy is a temporary trust, not a permanent entitlement.

Decades of corruption and complacency have constrained Sri Lanka’s potential. Yet the present moment offers a historic opportunity to reverse this trajectory. Prosperity will not come from populist promises or foreign assistance alone, but from disciplined governance grounded in moral courage.

Ultimately, good governance is not merely the pathway to prosperity; it is prosperity itself, expressed through justice, trust, and human dignity. When governance embodies these principles, Sri Lanka can finally realise its promise as an enduring national success.

References

[1] UNODC. (2024). What is good governance?Retrieved from https://www.unodc.org/e4j/en/anti-corruption/module-2/key-issues/what-is-good-governance.html

[2] Sen, A. (1999). Development as freedom. The globalisation and development reader: Perspectives on development and global change, 525 (2014).

[3] Goleman, D. (1996). Emotional intelligence: why it can matter more than IQ. Bloomsbury Publishing

[4] Tennakoon, H. (2025). As Sri Lanka’s economy pivots from tourism, it’s well placed to benefit from global trade and geopolitical jostling – new research. The Conversation, 23 July 2025. Retrieved from https://theconversation.com/as-sri-lankas-economy-pivots-from-tourism-its-well-placed-to-benefit-from-global-trade-and-geopolitical-jostling-new-research-261231

[5] Hoole, S. R. H. (2025). Wasantha Karannagoda & Gotabaya Rajapaksa: free for how long? Colombo Telegraph, 30 Sept. 2025. Retrieved from https://www.colombotelegraph. com/index.php/the-wasantha-karannagoda-gotabaya-rajapaksa-free-for-how-long/

[6] Sri Lanka. Ministry of Finance, Planning and Economic Development. (2025). A thriving nation, a beautiful life. Retrieved from https://www.treasury.gov.lk/web /national-policy-framework-a-thriving-nation-a-beautiful-life

[7] Mahbubani, K. (2015). Why Singapore is the world’s most successful society. The Huffington Post. Retrieved 30 Sept. 2025 from https://mahbubani.net/why-singapore-is-the-worlds-most-successful-society-the-huffington-post/