Sri Lanka: State of the Economy 2022 From Crisis to Recovery: Driving Policy Action through SDGs

Sri Lanka’s economy faces its harshest economic downturn in 2022 as it seeks to adjust to a severe bout of macroeconomic instability. In April 2022, the country announced its intentions to default on foreign debt settlements in the face of dwindling foreign reserves and acute shortages of imported essentials. The shortages, amidst galloping cost of living pressures, generated widespread public and social unrest in the country.

Policy adjustments to restore macroeconomic stability will result in a painful period of economic hardship in the medium term. The most crucial will be to establish sustainable fiscal frameworks and targets. Tax increases and spending cuts will limit the government’s ability to support lower-income households that are disproportionately impacted by high inflation. For any recovery to be equitable and sustained, Sri Lanka must pay renewed attention to pursuing a development framework that prioritises the well-being of its most vulnerable and disadvantaged population groups.

IPS’ annual flagship report Sri Lanka: State of the Economy 2022, analyses the most critical socioeconomic issues facing Sri Lanka through the framework committed to under the Sustainable Development Goals (SDGs) to drive policy action for economic recovery and social stability.

Policy Insights

Media Coverage of the Seminar

Pre-Event

Daily News 18 October 2022 [ Article PDF Format ]

Daily FT 19 October 2022 [ Article PDF Format ]

Post-Event

Videos

News First 25 October 2022

Ada Derana 25 October 2022

Articles

News First 25 October 2022 [ Article PDF Format ]

Ada Derana 25 October 2022 [ Article PDF Format ]