Effective management of economic crises is important to minimise long-term adverse impacts on the social sectors, says Dr Nisha Arunatilake

November 13, 2024

IPS Director of Research, Dr Nisha Arunatilake highlighted Sri Lanka’s economic and political crisis and its far-reaching impacts on the country’s social sectors. She focused on the significant challenges faced by the education and health sectors, which have worsened during the recent past. In particular, she showed how long-term mismanagement of the macroeconomy has reduced investments in health and education sectors resulting in increased household expenditure in these sectors, which has increased inequalities. Not only the level of funds available to the two sectors but also the uncertainties in the flow of funds have undermined the implementation of education and health policy initiatives and weakened the health and education services.

She emphasised the need for systemic reforms to stabilise these social sectors and align them with Sri Lanka’s economic recovery. Dr. Arunatilake highlighted that implementing strategic reforms and investing in key areas can help reduce existing inequalities and gaps in social sectors, supporting recovery for vulnerable groups.

Dr Nisha Arunatilake made these remarks while speaking at the South Asia Network Meeting (Virtual meeting) organised by UNESCO.