After a remarkable recovery from a very deep crisis in 2022, Sri Lanka’s recent budget for 2026 consolidates economic stabilisation and introduces a few markers for further growth. But more needs to be done to embed a growth strategy and transform its economy to avoid further IMF austerity programmes.

U.S. President Donald Trump embarked on a five-day trip to Asia, arriving in Kuala Lumpur on October 26. Covering Malaysia, Japan, and South Korea, the visit marked a shift in focus from the Ukraine and Gaza conflicts to Southeast and East Asia, as his administration is set to finalise its China policy and Indo-Pacific strategy. The trip yielded important results, though their impact will take time to assess.

India hosted Indonesian President Prabowo Subianto on a four-day state visit and as chief guest for its 76th Republic Day. The bilateral is now going beyond civilisational commonalities. Tourism, trade and connectivity are central themes, as is defence and maritime security cooperation with India. A robust India-Indonesia partnership can help both nations achieve shared goals in the Indo-Pacific.

India and China are the world’s most populous countries, with much in common and much divergence. Reform, discipline, long-term thinking and scale brought China to its present near first-world conditions; India is accommodative with its democracy, cultural diversity and all-round religiosity to achieve development, wealth creation, cultural preservation and self-respect. There’s a great deal that the two Asian giants can learn from each other.

Sri Lanka's sovereign debt default in April 2022 triggered a paralyzing economic crisis. Steep inflation and widespread financial uncertainty hampered any efforts at recovery. The economy is now showing signs of stabilization. Internally focused government policies, foreign investment, aid from development partners like India and the U.S., and the IMF’s recovery program have set Sri Lanka on the path to recovery and, hopefully, eventual economic success.

The new Sri Lankan government led by President Anura Kumar Dissanayake held its first meeting with the International Monetary Fund on October 3, to discuss further debt relief. Dissanayake, who overcame voter apprehension in the country’s presidential elections held two weeks ago, now has a historic opportunity to bring Sri Lanka out of the crisis and enable a compassionate and efficient transformation.

Bangladesh’s economy has been in distress for some time and is not doing as well as assumed. This could have been one of the factors that drove the protests and the subsequent coup.

The Quad foreign ministers meeting, held in Tokyo on July 29, took a clear position against China’s coercive actions in the East and South China seas. The four ministers have done their bit by reviewing the progress of the grouping’s many initiatives and reiterating its commitment to a free and open Indo-Pacific. For continued progress, the Quad now needs solid initiative from the top leadership – and a summit at the earliest.

China and India both give great importance to their neighbours – the former through its Friendly Neighbourhood policy, the latter through Neighbourhood First. Although China has been increasing its influence in the region, narratives that say that India is losing out to China lack in-depth analysis. To deduce the future trajectory of China in South Asia, it is important to study both China’s and India’s relations with each of these countries, as also with each other.

The 22nd India-Russia summit, held in Moscow on July 9 during Prime Minister Modi’s official visit, focused on expanding bilateral economic, energy, cultural and defense cooperation. It indicates the two nations’ commitment to adding substance and new momentum to their relationship. The long-delayed summit, which coincided with the NATO summit in Washington, should be viewed through the wider lens of a multipolar world.