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.
Forging Resilience through Adaptive Social Protection When Crises Collide
Adaptive Social Protection (ASP) requires the integration of social protection systems with disaster risk reduction strategies. Sri Lanka possesses much of the necessary infrastructure for ASP; however, greater emphasis is needed on integrating these systems to establish a successful ASP framework.
Recalibrating Aswesuma: A Move Towards a Dynamic and Adaptive Social Registry in Sri Lanka
In April this year, the Cabinet approved the expansion and extension of Aswesuma. This is timely, as strengthening social protection remains a critical priority for Sri Lanka, which continues to grapple with the aftermath of its economic crisis. However, …
Sri Lanka’s Current Nutrition Challenges: How Can They Be Addressed?
In the face of recent crises that have undone long-term development gains, nutrition and its related health problems are major concerns for Sri Lanka. The economic downturn following the COVID-19 pandemic, inflation, and supply chain disruptions have exacerbated food and nutrition problems. It has led to a rise in food prices and income losses that significantly constrained the population’s ability to afford a nutritious diet. Amidst macroeconomic uncertainty, less explored approaches, such as shifting away from adverse health behaviours such as smoking and drinking, can create additional space for expenditures to shift toward nutritional needs. It provides a mechanism to improve and diversify diets without relying on significant economic structural transformations in the country. With the upcoming general elections, the voters and policymakers should understand nutritional problems in the country and recognise the crucial role of policy changes, regulations, and advocacy in overcoming nutritional challenges.
VAT Hike in Sri Lanka: Who Really Pays the Price?
Earlier this year, Sri Lanka introduced major changes to the Value Added Tax (VAT) system. The VAT rate increased from 15% to 18%, and tax exemptions were removed for 97 items, including essential goods such as gas and stationery. While these revisions aimed to boost government revenue, they have also significantly increased the tax burden on low-income households, making life even more challenging for the most vulnerable during this ongoing crisis. This blog offers a comprehensive overview of the recent VAT revision and potential solutions for easing the VAT burden in Sri Lanka.
Demystifying Hawala/Undiyal – The Not So Dismal Science:[…] believed that informal fund transfer operations in Sri Lanka have expanded considerably due to the wide gap between the…