IPS Convenes Roundtable Discussions on: State of the Economy 2026

As Sri Lanka rebuilds after successive shocks, the country stands at a critical juncture to strengthen the foundations of durable and inclusive growth. Sustaining economic recovery will require prudent macroeconomic management, productivity-enhancing reforms, and measures to boost competitiveness, export diversification, and resilience.

At the roundtable discussion held on 14 October 2026, Dr Asanka Wijesinghe and Dr Lakmini Fernando, Research Fellows of the Institute of Policy Studies of Sri Lanka (IPS), explored policy priorities vital for securing durable growth in Sri Lanka, discussing findings from IPS’ Sri Lanka: State of the Economy 2026 report. The discussion which was held on the theme ‘Durable Growth: Rebuilding Economic Foundations Amid Shocks’, brought together experts for insightful discussions on the newly report’s key findings and policy recommendations.

Dr Asanka Wijesinghe presented key insights from the report’s chapters on policy perspectives, macroeconomic performance, trade policy, and export competitiveness. “Sri Lanka has stabilised, with GDP growth reaching 5.0 per cent in 2025 and 5.1 per cent in the first quarter of 2026,” noted Dr Wijesinghe. “Catching up on lost growth would require growth of approximately 8.3 per cent annually, well above current levels,” he added. Dr Wijesinghe also highlighted the importance of protecting existing EU and UK preferences, fast-tracking reciprocal trade agreements and accelerating tariff and para-tariff reforms.

Dr Lakmini Fernando presented on fiscal policy for durable growth, stressing that how public money is allocated matters more than how much is spent. She highlighted the need to rationalise expenditure, increase public investment, restore a long-term perspective in development planning and maintain public debt at sustainable levels. She further stated that, “The challenge is not merely to maintain fiscal discipline, but to redesign a fiscal framework that supports investment, productivity growth, and social inclusion.”

The discussion also included floor interventions from a panel of experts, namely, Dr Yashodha Senadheera, Deputy Director, Economic Research Department, Central Bank of Sri Lanka; Dr Lilia Aleksanyan, Senior Country Economist, Asian Development Bank’s Sri Lanka Resident Mission; and Mr. Sanjaya Ariyawansa, Senior Economist, Sampath Bank. Dr Wijesinghe and Fernando also responded to questions and comments from participants, explaining their insights and policy recommendations for reaching durable economic growth in Sri Lanka.