The Sri Lanka Development Update (SLDU) has two main aims. First, it reports on key developments over the past 12 months in Sri Lanka’s economy, places these in longer term and global contexts, and updates the outlook for Sri Lanka’s economy. Second, the SLDU provides a more in-depth examination of selected economic and policy issues. It is intended for a wide audience, including policymakers, business leaders, financial market participants, think tanks, non-governmental organizations and the community of analysts and professionals interested in Sri Lanka’s evolving economy.
Authors
- Citation
- “ World Bank . 2024 . Sri Lanka Development Update, October 2024: Opening Up to the Future . © Washington, DC: World Bank . http://hdl.handle.net/10986/42292 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- Economic Updates and Modeling
- Identifier externaldocumentum
- 34402426
- Identifier internaldocumentum
- 34402426
- Pages
- 48
- Published in
- United States of America
- Region country
- Sri Lanka
- Report
- 193955
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- IFC
- URI
- https://hdl.handle.net/10986/42292
- date disclosure
- 2024-10-24
- region administrative
- South Asia
Files
Table of Contents
- Standard Disclaimer 2
- Copyright Statement 2
- Photo Credits 2
- Preface 3
- Abbreviations 5
- Table of Contents 6
- EXECUTIVE SUMMARY .................................................................................................. viii 6
- A. Macroeconomic Developments .................................................................................. viii 6
- B. Opening Up to the Future .............................................................................................. x 6
- A. MACROECONOMIC DEVELOPMENTS ...................................................................... 1 6
- 1. Context ........................................................................................................................... 1 6
- 2. Recent Economic Developments .................................................................................. 3 6
- 3. Outlook and Policy Priorities ........................................................................................ 13 6
- B. OPENING UP TO THE FUTURE ................................................................................. 18 6
- 1. Introduction ................................................................................................................... 18 6
- 2. Missing Merchandise Exports and the Untapped Trade Potential .............................. 20 6
- 3. Key Export Sectors Face Considerable Challenges ...................................................... 22 6
- 4. Addressing Key Challenges through Reforms .............................................................. 24 6
- 5. Next Steps 6
- LIST OF FIGURES 6
- LIST OF BOXES 7
- LIST OF TABLES 7
- Executive Summary 8
- A. Macroeconomic Developments 8
- B. Opening Up to the Future 10
- A. Macroeconomic Developments 12
- 1. Context 12
- The pick-up in industry and services revived growth 14
- 2. Recent Economic Developments 14
- Inflation remained low supported by a reduction in administered prices 16
- Financial sector vulnerabilities remain high despite improved economic conditions 17
- The primary surplus increased as revenue performance was strong 20
- Human development outcomes have deteriorated in the face of high poverty and falling LFP 22
- 3. Outlook and Policy Priorities 24
- Continued reform implementation is central to preserving macroeconomic stability and economic gains 25
- Structural reforms are needed to address long-standing weaknesses and the root causes of the crisis 26
- B. Opening Up to the Future 29
- 1. Introduction 29
- 2. Missing Merchandise Exports and the Untapped Trade Potential 31
- 3. Key Export Sectors Face Considerable Challenges 33
- Cross-Cutting Challenges 34
- 4. Addressing Key Challenges through Reforms 35
- 4.1. Lower tariffs will increase incentives to export and improve exporters access to imported 35
- 4.2 Implementation of a NSW and other soft infrastructure will reduce barriers to exporting 37
- 4.3 An enabling regime to attract FDI would result in a focus on export-oriented investments 38
- 4.4 Other Priorities 41
- 5. Next Steps 41
- References 46
