Category: Economy
Advancing Human Capital for Durable Growth: Policy Priorities for Sri Lanka
By Sunimalee Madurawala, Research Economist, Institute of Policy Studies of Sri Lanka (IPS) The Sri Lankan economy has stabilised following a series of repeated shocks, including the COVID-19 pandemic, the economic crisis, and climate-related disasters. While economic activity has recovered, an important question remains: what will it take to sustain growth and make it durable? […]
Ceylon Chamber Calls for Careful Review of PSTA to Safeguard Competitiveness & GSP+ Access
The Ceylon Chamber of Commerce has submitted its observations on the proposed Protection of the State from Terrorism Act (PSTA) and is in the process of finalising its views on the proposed Prevention of Organised Crime Act, which will be communicated to the relevant authorities shortly. Whilst recognising the Government’s efforts to strengthen national security […]
Apparel exports grow in September, but the year-to-date picture remains cautious: JAAF
Sri Lanka’s apparel exports returned to growth in September 2026, an encouraging sign for the sector. Although the nine-month total is still behind last year, the Joint Apparel Association Forum (JAAF) sees the latest result as a positive step. Apparel exports for the month came to US$ 416.99 million, up 3.47% from US$ 403.01 million […]
Sri Lanka’s Exports Surpass US$ 13.6 Bn in the First Nine Months of 2026, Recording 5% Growth
Sri Lanka’s total exports have reached US$ 13.61 Bn during the first nine months of 2026, recording a year-on-year growth of 5.04% compared with US$ 12.96 Bn in the corresponding period of 2025. This positive performance reflects the continued expansion of the country’s export sector, supported by growth in both merchandise and services exports. According […]
Beyond Recovery: Policy Priorities to Achieve Durable Growth in Sri Lanka
By Rashmi Anupama and Kalani Kiriveldeniya, Research Assistants, Institute of Policy Studies of Sri Lanka (IPS) Sustaining Sri Lanka’s post-crisis macroeconomic stability requires productivity-enhancing reforms to achieve durable and inclusive growth. Against this backdrop, the Institute of Policy Studies of Sri Lanka (IPS) hosted a roundtable discussion on 14 October 2026 on its flagship publication, […]
Sri Lanka’s terror law could cost it a trade lifeline
A security Bill meant to please Brussels may end up angering it Sri Lanka has spent four decades trying to rid itself of the Prevention of Terrorism Act (PTA), a law used so freely that even its authors, in the 1979 parliament, called it temporary. The Protection of the State from Terrorism Bill (PSTA), gazetted […]
Government Moves to Pass Public-Private Partnership Bill to Boost Investment Infrastructure
The Cabinet of Ministers has granted approval to publish the Public-Private Partnership Bill in the Government Gazette and subsequently present it to Parliament for final legislative sanction. This decision, submitted as a proposal by the President in his capacity as the Minister of Finance, Planning, and Economic Development, was formally announced in the Cabinet media […]
Sri Lanka to open ports and power grid to private investors: President
President Anura Kumara Dissanayake has told investors that the government has put three things in place: transparent governance, the laws needed to protect business, and the infrastructure to support it. “We will do our part. You must do yours,” he said. He was speaking at the Sri Lanka Economic and Investment Summit 2026, organised by […]
Government to Draft Revised State Assets Management Bill, Halting 2024 Draft
Sri Lanka’s Cabinet of Ministers has approved a proposal to suspend further action on the previously published State Assets Management Bill and instruct the Legal Draftsman to prepare a revised draft incorporating recommendations from a technical expert committee. The initial bill had received Cabinet approval on July 22, 2024, to be published in the Government […]
Central Bank Releases Financial Stability Review for Year 2026
In terms of Section 70(1) of the Central Bank of Sri Lanka Act, No. 16 of 2023, the Central Bank of Sri Lanka released its annual Financial Stability Review (FSR) for 2026. This statutory report provides an assessment of the stability of the financial system, identifies and evaluates the associated risks and vulnerabilities, and outlines […]
Sri Lanka’s Economy Reaches Pre-Crisis Levels but Recovery Uneven, says World Bank Group
Sri Lanka’s economy reached a significant milestone, reaching pre-crisis levels. But the recovery remains incomplete and uneven, with household incomes and labor market outcomes still lagging the broader economic rebound, says the World Bank Group in its twice-yearly economic outlook. Released today, the latest Sri Lanka Development Update, From Recovery to Transformation, projects Sri Lanka’s […]
IMF Reaches Staff-Level Agreement on the Seventh Review under the Extended Fund Facility with Sri Lanka
Washington, DC: After constructive discussions, IMF Mission Chief for Sri Lanka Evan Papageorgiou issued the following statement: “IMF staff and the Sri Lankan authorities have reached staff-level agreement on the Seventh Review under the 4-year Extended Fund Facility (EFF) arrangement and concluded the 2026 Article IV Consultation discussions. The EFF arrangement was approved by the […]