Despite a challenging external economic climate, the Sri Lankan economy has remained an impressive performer amidst the highly subdued growth seen both in the developed and developing world. As the country pushes ahead in the transition to a middle income economy, it will bring with it significant upward social mobility and an emerging middle class. With their more discerning consumer demands, a growing domestic middle class can spur service and process innovations that propel economic growth. A growing middle class can also positively impact public policy by making greater demands on, and wanting a greater voice in, how they are governed and the institutions that govern them. However, rising incomes and mobility will also bring additional pressure on already stretched resources and economic opportunities, from greater urbanization, environmental degradation, changes in aspirations on the type of employment sought by young people, and changes to the country’s epidemiological profile.
The Sri Lanka: State of the Economy 2013 takes an exploratory look at the many promising development achievements, opportunities and challenges ahead for the country. The rising socio-economic prosperity in Sri Lanka, if fostered skillfully and inclusively with progressive public policies, can spur economic dynamism, innovation, and social progress, and place the country on firmer ground, as it makes a decisive transition into a middle-income economy and beyond.
The report is available for sale from the IPS premises at No. 100/20, Independence Avenue, Colombo 07 (Tel: +94-11-2143100, +94-11-2665068), and bookshops island-wide. More details of the report could be obtained from the IPS website: www.ips.lk.