Theme: Fiscal Policy for Growth: Sustainable Financing for Development
Sri Lanka: State of the Economy 2016 report focuses on the many interrelated problems constraining investment and productivity across the Sri Lankan economy owing to weak public finance management. Under the overall theme of “Fiscal Policy for Growth: Sustainable Financing for Development“, the report calls for fiscal consolidation efforts aimed at broadening Sri Lanka’s tax base and minimizing distortions, with expenditure measures aimed at rationalizing spending and improving efficiency. The report argues for sound fiscal policy setting as a priority for macroeconomic stability, a fundamental prerequisite for sustained growth.
The Report Argues That The Effectiveness Of Fiscal Consolidation Efforts Is Likely To Be Enhanced When Reforms Reinforce Each Other Through A Careful Calibration Of Taxes And Expenditures To Harness Growth And Improve Economic Outcomes Across Key Policy Areas’
The report discusses and recommends improvements in public finance management in detailed chapters related to; promoting exports and FDI under financing constraints, labour market reforms under tight fiscal conditions, advancing Sri Lanka’s education system through innovative funding, health care financing, improving efficiency and mobilizing resources for poverty reduction initiatives, financing urbanization, sustainable development under economic constraints: MBIs and environmental fiscal reforms and role of economic incentives in financing agricultural investments.
The annual publication is widely distributed among policy makers, economists, universities, development partners as well as the private sector.