The Role of Planning in Sri Lanka’s Market Economy

Thematic Area: Macro, Trade, & Economic Growth

Start Date: September 19, 2024

The crisis-hit Sri Lankan economy, once seen as a pioneer in development planning, has lost its legacy in national planning well before its economic development gains began to decline. During the golden era in national planning, the country’s development process was more systematic, with better coordination among planning, budgeting, and monitoring institutions and more streamlined implementation. In recent years, however, planning has been lopsided due to shifts in the economic system and political and bureaucratic leadership. Considering the multiple crises Sri Lanka is currently facing, there is a clear need for a strong national development framework that ensures sustainable, inclusive, and rapid economic recovery.

In such a context, this study examines the role of planning in Sri Lanka’s market economy by answering the critical question of whether the Sri Lankan government is doing too much or too little in planning market economy?”