Economic Crisis

Between Homefront Policies and Global Developments: Sri Lanka’s External Sector Outlook

Having weathered a challenging period marked by a deep economic crisis, Sri Lanka is now demonstrating positive signs of an economic upturn. Still, amidst limited homefront policy alternatives against an unfavourable global backdrop, a critical question arises: how will Sri Lanka’s external sector cope in the face of these challenges?
Notably, import controls, initially imposed in response to the dearth of foreign exchange liquidity in the domestic market, are being largely eased. The government is actively seeking to forge partnerships with regional giants, aiming to strengthen trade relations through Free Trade Agreements (FTAs). Nevertheless, in the broader global context, the rise of geopolitical rivalries, slow growth and contracting demand in key markets create multiple uncertainties for Sri Lanka’s external sector recovery.

Sri Lanka’s Economic Policy Choices: From Stabilisation to Growth

Sri Lanka has faced a turbulent economic journey in recent years, with 2022 witnessing an unprecedented crisis marked by a staggering 8.7% GDP contraction. The economy slowly but steadily pulled back from the abyss over the course of 2023. These positive developments are a result of the implementation of economic stabilisation measures and groundwork for institutional and regulatory reforms to support future growth. But there are concerns about the impact on the most vulnerable groups. As a country that faces years of weak growth, IPS’ ‘Sri Lanka: State of the Economy 2023’ report, explores the complex policy choices Sri Lanka faces as it navigates the path to economic recovery.

Prioritising Child-Friendly Policies: Addressing Sri Lanka’s Child Malnutrition Crisis

Even before the onset of COVID-19, malnutrition stood as a significant driver of multi-dimensional poverty among children in Sri Lanka. Startling data from the Department of Census and Statistics (DCS) in 2019 revealed that one in three children aged 0 to 4 who are multidimensionally poor, are either underweight or stunted. The multiple crises that affected Sri Lanka since 2020 have only exacerbated the already precarious nutrition situation in poor households. This blog argues the need for prioritising social policies focused on children to ensure sustained investment in human capital.

Battling Disease and Debt: Financing Non-Communicable Diseases Amidst Sri Lanka’s Economic Crisis

Over the last few decades, non-communicable diseases (NCDs) have become a critical health challenge in Sri Lanka, accounting for over 80% of total deaths and 38% of health expenditure in 2019. The economic impact is particularly challenging for households affected by chronic NCDs as they bear higher costs of medicines, pharmaceutical products, medical laboratory tests, and other ancillary services. With the current economic downturn, preventing and financing NCDs has become even more challenging for Sri Lanka. An ongoing IPS study delves into the implications of the economic crisis on the country’s health system, with a specific focus on NCD prevention and financing. The study conducted an extensive analysis by gathering perspectives from various stakeholders. This blog is based on the information collected from these stakeholders.

Private Tutoring Amidst Sri Lanka’s Economic Crisis: Issues Faced by Students

Sri Lanka’s education sector, still reeling from the effects of the COVID-19 pandemic, now faces acute challenges due to the current political and economic crises. The sudden imposition of curfews and the lack of transportation have resulted in school closures and students being deprived of structured and systematic in-school education. In Sri Lanka, closing schools for just one day causes a loss of 25 million learning hours and 1.4 million teaching hours. Alongside this, private tutoring has gained greater importance. This blog discusses the issues faced mainly by Ordinary Level (O/L) and Advanced Level (A/L) students in attending tuition classes based on an IPS study. The study findings are derived from a sample of about 340 students, and 16 teachers and tutors across Sri Lanka.