Beyond the Crisis: Sectoral Paths to Durable Growth

The Sri Lankan economy has faced a series of external and internal shocks in recent years that weakened its long-term growth outlook. Despite defying post-crisis growth trajectories, fresh uncertainties from oil price shocks and climate-related risks suggest that the policy context to accelerate growth will be even more challenging. In this context, select policy recommendations to strengthen Sri Lanka’s economic foundations toward higher, durable growth are set out in this article. It draws on recent research by the Institute of Policy Studies of Sri Lanka (IPS), some of which is detailed in its forthcoming annual flagship report Sri Lanka: State of the Economy 2026.

Middle East Conflict: The Impact on Migration and Remittances in Sri Lanka

With the ongoing conflict in the Middle East (ME), Sri Lanka finds itself at a particularly vulnerable juncture as it carefully navigates a fragile economic recovery. Labour migration offers jobs to counteract the lack of opportunities within the economy. Related micro-level remittances prevent households from dipping back into poverty. Similarly, on a macro level, these remittances, of which about 50% come from ME countries, help build foreign reserves, stabilise the economy, and pay for much-needed imports. This blog unpacks some short- to medium-term consequences for migrant workers, highlighting what these attacks and related developments mean for the Sri Lankan economy.

The Unlocked Potential of Ageing and Silver Economy in Sri Lanka

With over 18% already aged 60 and above—and one in four projected to be 60 or older by 2041—the Sri Lankan population is rapidly ageing. IF harnessed effectively, the elderly population and the related Silver Economy have great potential to contribute to Sri Lanka’s economy. This blog analyses shows the challenges and the possibilities for Sri Lanka to reap demographic dividends by unlocking the potential of the ageing population and the related Silver Economy.

Record Remittances to Sri Lanka: Hidden Realities Behind the Headlines

Worker remittances to Sri Lanka have set a new all-time high record with USD 8.076 billion in 2025. This 22.8% growth, compared to the USD 6.6 billion received in 2024, is shaped by the high number of worker departures experienced in recent years.

While migrant workers’ contribution to easing pressure on the country’s balance of payments is widely appreciated, the hardships and sacrifices they endure are often overlooked. This blog highlights the challenges faced by migrant workers, drawing evidence from two recent studies by the Institute of Policy Studies of Sri Lanka (IPS).

Occupational Exposure to GenAI in Sri Lanka

The first two infographics in this blog were created with Artificial Intelligence (AI) technology, resulting in production times of mere seconds. In contrast, creating similar infographics without AI would typically require several hours of work. This illustrates how AI significantly boosts worker productivity. Nearly every sector showcases examples of AI enhancing labour efficiency. For instance, online educational content can be effortlessly generated with AI by just inputting text.