Sri Lanka State of the Economy 2016

Sri Lanka: State of the Economy2016 report focuses on the many interrelated problems constraining investment and productivity across the Sri Lankan economy owing to weak public finance management. Under the overall theme of “Fiscal Policy for Growth: Sustainable Financing for Development“, the report calls for fiscal consolidation efforts aimed at broadening Sri Lanka’s tax base and minimizing distortions, with expenditure measures aimed at rationalizing spending and improving efficiency. The report argues for sound fiscal policy setting as a priority for macroeconomic stability, a fundamental prerequisite for sustained growth.

The Report Argues That The Effectiveness Of Fiscal Consolidation Efforts Is Likely To Be Enhanced When Reforms Reinforce Each Other Through A Careful Calibration Of Taxes And Expenditures To Harness Growth And Improve Economic Outcomes Across Key Policy Areas’