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.

Managing ties with the U.S., China, Russia, and those within its South Asian neighbourhood will be India’s key foreign policy priorities in 2025. For India to be a principal player in the region and beyond, it must skillfully weave national security, economic, and diplomacy into its strategic calculations.

Prime Minister Modi’s state visit to Nigeria on November 16-17 marks the first leg of his transcontinental diplomatic tour and offers a valuable opportunity to advance cooperation with Africa and the Global South. The trip, aimed at deepening cooperation in trade, investment and defence, signaled India’s recognition of Nigeria’s significance as Africa’s regional and continental powerhouse.

Zambia celebrated 60 years of independence last week. The African nation's position at the crossroads of eastern central and southern Africa and unbroken democratic rule makes it a vital strategic partner for India in the continent. The country’s vibrant political institutions and abundant natural resources indicate opportunities in the energy, mining, and tourism sectors that can revitalize a historically cordial relationship between India and Zambia.

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.

Sri Lanka’s sovereign debt default in 2022 triggered the worst economic crisis in the country’s post-independence history. By mid-2024, the economy started showing signs of recovery, with a performance higher than other debt-defaulting nations and exceeded IMF expectations. The current stable path, however, is not enough. Sri Lanka needs to shift its economic trajectory from one of debt distress to sustained growth over the next few years.

Comparing India and China’s defence forces reveals that it is more than just a numbers game. Increased defence spending and modernization with AI and quantum computing has given China a substantial edge over India’s military capability. India is working to close the gap with an energetic focus on indigenous procurement and expanding international exercises.

Asian nations like Sri Lanka have seen a rush of Russian and Ukrainian tourists over the last two years. They discover salubrious climes and overstay their visas to start small businesses. It has helped Sri Lanka boost tourism after its 2022 debt default but also created economic problems for locals. It is necessary to identify trade-offs between economic benefits and security threats associated with extended-stay tourism.

African National Congress (ANC) lost its long-held majority in the recent national elections in South Africa. While President Ramaphosa continues to be a pivotal actor in the new landscape, the political stakes have become higher as the new government sets about solving the dire economic issues that ordinary citizens face.

A tiny nation of half a million people, Maldives has drawn enormous attention from the media, diplomats and informed public since Muizzu’s election last September. The interest has only risen after the recent diplomatic row with India and Muizzu’s increased bonhomie with Chinese President Xi Jinping.