Based on a new Working Paper by IPS researchers titled ‘Incentivizing Foreign Investment in Sri Lanka and the Role of Tax Incentives’, this article argues that a key medium-term challenge facing the country is to find a balance between providing a competitive tax incentives regime to attract FDI and keeping tax foregone to a minimum in order to preserve domestic revenue.

In the second article in the Talk Nanotech special series, we have a guest article by Shalini Dharmawardena, Senior Economist (Economic Research Department) – Central Bank of Sri Lanka. She argues that the industrial thrust, budgetary allocations, commitment of financial institutions, education policy, and private sector enthusiasm will be the key success factors in achieving a competitive edge for Sri Lanka in the international nanotechnology arena. She emphasises that collaboration is essential, with a synergy of state allocated funds, private sector participation, expatriate scientists contribution, and the financial sector involvement.

An e-book of the ‘Sri Lanka: State of the Economy 2012’ containing summary information and visuals of the 7 key chapters is now available for free download. This e-book also contains links to a video presentation of the main highlights of the report.

In our first article in the new series ‘Talk Nanotech’, nanotechnology evangelist and former head of SLINTEC, Prof. Ajith De Alwis, discusses Sri Lanka’s National Nanotechnology Initiative in the context of the economy’s drive to become more innovative and competitive, and warns that lack of commitment could derail the valuable gains made so far. He calls for a focussed thrust on developing Sri Lanka’s nanotechnology potential, with strong political leadership.

IPS recently hosted a discussion on the Sri Lankan perspectives of a World Bank report titled ‘More and Better Jobs in South Asia’ and brought to light many issues related to the Sri Lankan job market. Among the diverse range of views that surfaced, the debate on “what really is a better job?” was an interesting one that emerged. As several panelists argued, for Sri Lankans, “better jobs” may not always be determined by just the wages people earn. For the Sri Lankan worker other things clearly matter too.