The global economy is going through the toughest episode in its recent history. The COVID-19 pandemic has caused a sharp global economic downturn and disrupted societies in an unprecedented manner. Governments across the world have taken decisive steps to address the economic and social consequences of the pandemic, with differing degrees of success. In spite of the extremely adverse conditions imposed by COVID-19, proactive policy responses of the Government of Sri Lanka have already resulted in notable achievements. These include improved trade and current account balances, a robust investment pipeline, a positive response by domestic investors, a low interest rate regime and a stable exchange rate. Lower reliance on foreign financing and the timely repayment of the country’s debt obligations, along with the reduced cost on domestic debt have also resulted in a favourable shift in the public debt profile as well.