Reforms

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.

Towards a High Middle Income Sri Lanka: Recipe for Transition

Diversification of the export basket, a more effective communication strategy to build support for reform initiatives, and addressing the skills constraints of the labor force are the top priorities for Sri Lanka. This blog, based on the closing session of the Saman Kelegama Memorial Conference, discusses the stifling bottlenecks that Sri Lanka faces in its transition towards a high middle income country (HMIC) and how to overcome them.