Political Economy

Russia-Ukraine Conflict: Economic Implications for Sri Lanka

The Russian invasion of Ukraine deepens the existing global economic woes – persistent supply chain bottlenecks and associated rising inflation – clouding the prospects of a smooth global economic recovery from the pandemic. The ongoing military conflict in Europe could not have come at a worse time for Sri Lanka given its own prevailing high inflation, rising energy costs, and scarcity of foreign exchange. Against this backdrop, this article discusses the economic impact of the European conflict on Sri Lanka, the sectors that will be hit hard, and ways to mitigate the negative impact.

Bangladesh – Sri Lanka Preferential Trade Agreement: Gains and Policy Challenges

The ongoing Bangladesh-Sri Lanka discussions on a preferential trade agreement (PTA) will benefit from knowing the potential gains from reducing bilateral trade costs. Ex-ante estimates predict modest gains for Sri Lanka and Bangladesh in absolute terms, even after completely removing the sensitive list. Given that the estimated modest economic gains of a Bangladesh-Sri Lanka PTA do not justify a trade deal that requires substantial resources for negotiations, the PTA should have fewer regulatory measures and tariff concessions for the products on the offensive lists to maximise the economic benefits of a PTA.

What Sri Lanka Should Know about China’s New Economic Dynamism

China’s ongoing reform programme is a focused and strategic effort that has the potential to transform the business climate and also competitiveness of Chinese exports. Sri Lanka should take a cue from it, argues Anushka Wijesinha.   “China is still a …

Aid and Trade Between Sri Lanka and China – A Snapshot of IPS Insights

A snapshot of IPS researchers insights (including audio interviews) on the growing China-Sri Lanka relationship, and what the future holds in store with the launching of a Free Trade Agreement

Asia’s Rise: Undoubted but not Unimpeded

The one defining feature of the shifts in economics, geopolitics and society taking place today, is the rise of Asia. What are the factors influencing this rise? And what lessons do they hold for Sri Lanka’s growth journey?

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