Courtesy: High Commission of India, Colombo
Cyclone Ditawah has put a serious dampener on Sri Lanka’s rosy post-budget economic outlook. Sri Lanka can help itself by using available national resources, but India can help too, by partnering with multilateral development banks to manage the post-Cyclone Ditwah reconstruction implementation strategy. It can also share its experience of implementing gradual economic reforms and policy planning under Niti Ayog to support Sri Lanka’s efforts.
Courtesy: Sri Lanka PMD
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.
Courtesy: Gateway House
A slowdown of the Chinese economy, and the shift, particularly by MNCs, from China to other more competitive locations has opened up business opportunities for latecomers to supply chains in the developing world. Evidence suggests that Southeast Asia and some South Asian countries like India, Sri Lanka, Bangladesh, could be beneficiaries of the supply chain shift, particularly in labour-intensive segments.
Courtesy: New Spotlight Magazine
Building a robust engagement with India on energy can help offset some of the economic and political crises that most of India’s neighbours are facing. Smaller South Asian neighbours will benefit from cheaper electricity and oil, paving the way for greater regional economic cooperation.
Courtesy: Gateway House
Geopolitics is increasingly intertwined with the economic destiny of South Asia. Even before the U.S. tariffs were rolled out, growing polycrises had hit the global economy, which has been struggling since the pandemic. South Asia seems a relatively bright spark of regional trade and growth. This paper analyses South Asia’s trade architecture in the backdrop of a sluggish world economy in the 2020s, and makes recommendations for closer regional economic integration.
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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.
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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.
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The presidential election in Sri Lanka on September 21 is the country's first since its economic crisis of 2022. Dr S D Muni, Professor Emeritus at the School of International Studies, Jawaharlal Nehru University, discusses major issues on the ballot, principal candidates in the race and their policies, long-term social and political trends, and takeaways for the Sri Lankan parliamentary elections due later this year.
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The economic agenda is the key issue in the Sri Lankan Presidential elections to be held on Sept 21. This island nation is seeking a return to prosperity through relief from onerous debt, reduced corruption, an effective bureaucracy, and constitutional and economic reforms. The five principal players in the race, however, have varied agendas that may not fulfil all of the people’s needs and desires.
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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.