Implementing the Economic Governance Index (EGI) Across Nine Provinces in Sri Lanka: IPS hosts Validation Workshop in collaboration with the Asia Foundation

28 July 2025

The Institute of Policy Studies of Sri Lanka, in collaboration with The Asia Foundation, recently hosted a validation workshop to drive the implementation of the Economic Governance Index (EGI) in 25 districts across nine provinces. The workshop began with an overview of the EGI framework by Dr. Gopa Kumar K Thampi, Technical Advisor of The Asia Foundation.

This was followed by an overview of the EGI methodology and preliminary findings by IPS Research Fellow Dr. Asanka Wijesinghe. Participants were then divided into two breakout groups to discuss the methodological framework and findings in more depth, respectively addressing provincial results and the six thematic areas of the Index.

The EGI is a diagnostic tool developed by The Asia Foundation and IPS to measure the government-induced environment that MSMEs operate in at the subnational level. Initial findings show gender and size-related disparities in access to finance. For instance, female-owned businesses are less likely to apply for credit but tend to receive better terms, while larger businesses have significantly better access to low-interest loans.

The EGI promotes subnational benchmarking, stimulates evidence-led reform, and aligns with Sri Lanka’s national development priorities. It also empowers subnational governments such as Provincial Councils and Local Authorities to take the lead in local economic reform. The data offers a roadmap to strengthens local government and supports MSME formalisation, service delivery, and regulatory quality-especially within evolving industrial zones.

Insights from the validation workshop will inform the finalisation of the EGI and guide its integration into local development planning and national policy discussions. The workshop brought together key informants from all 25 districts and all 9 provinces in Sri Lanka.