Macroeconomics and Policy Efficiency
gold

The Unseen Impact of US Tapering of Quantitative Easing on the Sri Lankan Economy

Sri Lankan authorities often point out that Sri Lanka has not been as badly affected by the Federal Reserve’s tapering of quantitative easing (QE) as other emerging/frontier economies. In a conventional sense, this may be correct. Yet, this article considers how QE tapering affecting world gold prices impacted Sri Lanka through the gold pawning channel. It argues that US tapering has in fact had a very significant impact on the Sri Lankan economy, in terms of monetary contraction, consumption, bank asset quality and also in terms of financial inclusion.

A Closer Look at the Fiscal Dynamics of Budget 2014

Sri Lanka stands at important crossroads as it makes a decisive transition into a middle-income economy. With GDP growth targeted at 7.5 – 8% over the medium term, the need for effective fiscal consolidation cannot be overemphasized. In this light, …

REFORMING A POST-WAR ECONOMY IN FOUR YEARS?

Can a country bring about economic reforms in just four years after a war? This article looks at post-war Georgia where the progress was transformative. She argues that while circumstances differ between countries, the Georgian case demonstrates that coherent and focused efforts can bring about significant transformation in just four years. Yet, sustaining the positive trajectory requires a focus beyond aggressive reform to also include important elements of economic governance and institutional strengthening.

Sri Lanka’s Middle-Income Transition: Thinking Beyond the “Optics”, to the “Mechanics”

‘The middle-income transition’ – a challenge that dozens of countries are grappling with and, as of late, is increasingly being spoken about in Sri Lanka as well. A recent business forum (by LBR-LBO) was one of the first private sector …

How Large is the Sri Lankan Global Middle Class?

Introduction In Sri Lanka there is evidence of a growing middle class. The incidence of poverty in the country has sharply come down over the past decade. There are indications of growing demand for advanced services and luxury products. Car …