The end of the ethnic conflict in Sri Lanka in 2009 generated widespread expectations of a period of sustained economic growth, building on the achievements of the liberalisation reforms sustained over three previous decades. However, recent developments have dampened that optimism, rekindling fears that Sri Lanka’s tale of missed opportunities may continue. The analysis in this paper suggests that return to the failed past policies of inward-oriented development strategies offers no viable solutions for the economic problems confronting Sri Lanka.