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.
Sri Lanka’s Food Security after Cyclone Ditwah: Risk, Recovery, and Resilience
Cyclone Ditwah destroyed early-stage Maha season paddy, vegetables, and perennial crops, disrupting both current and upcoming harvests. Together, rising prices, lower production, and declining purchasing power are likely to intensify food insecurity and further undermine nutrition. Restoring transport links, supporting farmers to replant, protecting vulnerable households and strengthening climate-resilient farming are essential.
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, …
Priorities in Focus: Will Budget 2025 Address Sri Lanka’s Agricultural Challenges?
The agricultural sector in Sri Lanka has long been a pillar of the nation’s economy, yet its decline reflects a complex interplay of economic shifts, policy decisions, and underutilised potential. Agriculture’s contribution to the overall economy in Sri Lanka has gradually diminished over time, while the agricultural labour force has shrunk at a slower rate. This disparity between a declining sector and a stagnant workforce, coupled with the failure to address structural changes by improving land and labour productivity, has led to poor sector performance, particularly in terms of food security and farm income. Additionally, unproductive public spending in the form of inefficient allocation, short-term concentration, and neglect of crucial areas is an important contributory factor. In this context, it is crucial to assess whether public expenditure allocation in Sri Lanka has undergone significant shifts aimed at unlocking the agriculture sector’s potential while advancing food security and fostering rural development.
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.
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…