High levels of inequality impede sustainable growth and development of a country. Sri Lanka made impressive strides to reach an upper middle-income country (UMIC) status in July 2019, only to slip back a year later. The COVID-19 crisis, amid growing inequities, is likely to make the task of regaining UMIC status even harder. This blog highlights the main sectors and social groups that are adversely affected, and explains the need for inclusive economic growth (IEG) post-COVID-19 for Sri Lanka to emerge as a peaceful and developed country.
The formation of the world’s largest regional trade bloc – the Regional Comprehensive Economic Partnership (RCEP) in November 2020 – on Sri Lanka’s doorstep raises fresh questions about how the country will navigate its most recent Asia-centric re-positioning.
Sri Lanka is experiencing a second wave of the COVID-19 pandemic, and cities and urban centres have become the hotspots of vulnerability. With their relatively favourable economic conditions and extensive transport networks, cities attract migrants from rural areas, frequently resulting in overcrowding and greater vulnerability to external shocks such as COVID-19. Hence, strengthening resilience of cities and urban settlements to meet health emergencies is a critical part of the national response strategy to pandemics. This blog explains why cities should be focal points of pandemic response planning, and discusses ways to build pandemic resilience in Sri Lanka’s urban areas.
Amidst the severe disruptions triggered by the COVID-19 pandemic, it is important for economies to formulate and implement effective policies to mitigate the negative impacts induced by the crisis. Given the fact that Sri Lanka is an aspiring upper-middle-income country (UMIC), this blog examines fiscal responses by affected countries including Sri Lanka, at different income levels – i.e. high-income countries (HICs), middle-income countries (MICs), and low-income countries (LICs) in line with multilateral financial institutions’ (MFIs) recommendations.
The Sri Lankan economy is likely to face a contraction in 2020 as a direct result of the COVID-19 pandemic but there is potential for this to be followed by a sharp V-shaped economic recovery. The means of navigating such a recovery path were discussed at a webinar panel discussion held last Thursday (15th October) to mark the release of the Institute of Policy Studies of Sri Lanka’s (IPS) flagship report ‘Sri Lanka: State of the Economy 2020’.