World Economy and Trade

Counting the Cost: Terrorism and its Impact on the Sri Lankan Economy

The immediate economic consequences of Sri Lanka’s brutal Easter Sunday terror attacks are obvious. The damage to tourism is the most apparent; investments decisions might be delayed. The impact of a serious breach of security depends on whether it is perceived as an isolated incident or an endemic threat. A swift and efficient response to bring the security situation under immediate control and restore ‘normalcy’ helps establish the former; confusion and disarray only reinforce the latter and delays an economic recovery.

The Great British Breakoff: Making Sense of the Brexit Debacle

There could be grave consequences for the UK economy in the long run after leaving the European Union (EU), as it stumbles from one political-economic crisis to another. Prime Minister, Theresa May has failed to garner the required support in parliament for a proposed deal, leaving the country on the verge of a no-deal Brexit. The situation has been complicated even further with the passage of several votes in the parliament in January. This article will discuss some key questions regarding the current state of Brexit, potential outcomes, and their respective impacts on Sri Lanka.

Managing Sri Lanka – China Economic Relations: BRI, Debt, and Diplomacy

As Sri Lanka, like many other developing countries, escalates its engagement with China’s ambitious Belt and Road Initiative (BRI), the question of debt entrapment requires a more rigorous review. Criticism of Chinese loan disbursements have focused not only on the volume of funds, but also on the terms. However, the author argues that, Chinese loans are not the primary cause of Sri Lanka’s debt imbroglio; but, they have contributed to, and possibly aggravated, the problem.

Do Not Bite Off More than You Can Chew: Single Window Implementation Process in Sri Lanka

Sri Lanka’s National Single Window (NSW), when implemented, will allow businesses to lodge information and documents with a single entry point, to fulfil all import, export, and transit-related regulatory requirements. Currently, Sri Lanka is at the beginning of the project life cycle in the establishment of a NSW, with the development of a NSW Blueprint to be released soon. In this blog, Janaka Wijayasiri deliberates on the implementation process of the NSW.

Chickens, Turkeys, and Tariffs – A First Attempt at Measuring Border Tax Evasion in Sri Lanka

Although tax evasion by individuals and corporates has been recognised as a burning issue, especially in the context of Sri Lanka trying to increase its direct tax take, there is little empirical work on tax evasion for policymakers to make evidence-based decisions when setting tax rates. This is mostly due to limitations in the data. In her research, Harini Weerasekera attempts to measure ‘border tax evasion’, since export and import data is well recorded for the country, and can act as a source of measuring evasion that could be taking place at its border.