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2005-11-19 ➔ 2015-01-09United People's Freedom Alliance (UPFA) / SLFP
Mahinda Rajapaksa Administrations (I & II)
මහින්ද රාජපක්ෂ පාලන කාලය (2005–2015) • மகிந்த ராஜபக்ஷ நிர்வாகம் (2005–2015)
Executive President
Mahinda Rajapaksa
Prime Minister(s)
Ratnasiri Wickremanayake / D. M. Jayaratne
Finance Minister(s)
Mahinda Rajapaksa, Sarath Amunugama (Deputy/Acting)
Avg GDP Growth
6.8%
Avg Inflation
8.9%
Start Debt/GDP
90.6%
End Debt/GDP
71.3%
Peak Reserves
$8.2B
FX Trajectory
Rs. 131.3
Major Economic & Governance Policies Enacted
Mahinda Chinthana Development FrameworkYear: 2005
State-led economic strategy halting further privatisation of key utilities and prioritizing massive transport, energy, and port infrastructure.
Documented Impact: Construction boom driving high nominal growth; significant expansion of sovereign external debt.
First Commercial Sovereign Bond Issuance (ISB)Year: 2007
Sri Lanka entered international capital markets with its inaugural $500M 5-year ISB issuance at 8.25% coupon.
Documented Impact: Began structural shift away from concessional multilateral borrowing towards high-interest commercial market debt.
Mega-Infrastructure DriveYear: 2008
Initiated Southern Expressway (E01), Norochcholai Lakvijaya Coal Power Plant, Hambantota Magampura Port, Mattala Airport, and Colombo Port South Container Terminal.
Documented Impact: Solved long-standing base-load electricity deficits and opened expressway network; faced severe criticism over return on investment (ROI) for Hambantota and Mattala.
Documented Achievements
- Ended 30-year civil war, establishing national physical security and territorial integration.
- Delivered major modern infrastructure: Southern Expressway, Lakvijaya Power Plant, Colombo Port expansion.
- High average post-war economic growth averaging 6.8% between 2005 and 2014.
- Reduced poverty headcount ratio from 15.2% (2006) to 6.7% (2012).
Documented Criticisms & Policy Failures
- Heavy reliance on non-concessional commercial debt (ISBs) and high-interest bilateral project loans.
- Tax-to-GDP ratio declined steadily from 13.7% in 2005 down to 10.1% in 2014.
- Commercial unviability and under-utilization of Mattala Rajapaksa International Airport and Hambantota Port Phase 1.
- Central Bank hedging deal losses (2008) and Greek Sovereign Bond purchase losses (2011).
Audited Controversies & Judicial Records
⚖ CBSL Petroleum Oil Hedging Transaction Audits (2008).
⚖ Central Bank Greek Government Bond Investment Losses ($30M write-down in 2011).
⚖ SriLankan Airlines Airbus Re-fleeting contract lease penalties ($115M cancellation fees incurred in 2016).