Economy
From The Report: Sri Lanka 2017
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With robust growth figures, improving infrastructure, an increasingly service-dominated economy and a new reform-minded government, Sri Lanka is an economic champion that has too often been overlooked. The island nation has seen continuous growth since a recession in 2001, even during the last years of the civil war, which ended in 2008. The rising tide has lifted all boats, and pockets of poverty are relatively rare, with more and more Sri Lankans able to participate in the country’s economic success.

This chapter contains interviews with Ravi Karunanayake, Former Minister of Finance; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; and Tilak De Zoysa, Chairman, Carson Cumberbatch.

Articles from this Chapter

Overview

Growing momentum: To ensure continued expansion, the government is realigning economic policy and tackling weaknesses
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With robust growth figures, improving infrastructure, an increasingly service-dominated economy and a new reform-minded government, Sri Lanka is an economic champion that has too often been overlooked. The island nation has seen continuous growth since a recession in 2001, even during the last years of the civil war, which ended in 2008. The rising tide has lifted all boats, and pockets of poverty are relatively rare, with more and more Sri Lankans able to participate in the country’s economic…

Analysis

Looking for work: While overall unemployment is low, there is disparity between the genders and levels of education
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Sri Lanka’s robust economic growth in recent years has boosted job creation, but the country still faces the challenges of high youth unemployment on one hand and skills shortages on the other. On The Job The number of people employed in Sri Lanka rose by 1.5% in 2016 to nearly 7.9m, up from 7.8m in 2015, according to the Central Bank of Sri Lanka (CBSL). Job growth was driven by the industry and services sectors, which saw employment rise from 2m to 2.1m and 3.6m to 3.7m, respectively,…

Interview

Balancing the books: Ravi Karunanayake, Former Minister of Finance, on reducing the deficit and stimulating economic growth
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Interview: Ravi Karunanayake What are the national priorities to be reflected in the 2017 federal budget? RAVI KARUNANAYAKE: We are going to lower the fiscal deficit. We aim to do this by improving tax revenues and increasing compliance. Tax stands at 13.2% of GDP and measures will be taken to increase this figure. We also feel there is a lot to be gained by improving our state-owned enterprises. Through the enhanced performance of these institutions not only will we increase the welfare of our…

Interview

Building a stronger base: Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce, on improving the investment climate
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Interview: Samantha Ranatunga In what ways can policymakers promote regional economic integration? SAMANTHA RANATUNGA: Policymakers use different methods to promote regional economic integration. Trade agreements are a common method of integration, and Sri Lanka has signed agreements with countries such as India and Pakistan. In the near future Sri Lanka will sign an expanded trade agreement with India in addition to signing agreements with China, Singapore, Turkey and the US. Another way to promote…

Analysis

Funding the future: A recent IMF deal aims to bring the country up to its economic potential through benchmarks and reforms
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Sri Lanka’s deal with the IMF agreed upon in June 2016 could help the country open a new chapter of wide-ranging economic reform. While noting the country’s economic weaknesses that have been brought into focus in recent years, the fund also looked favourably upon Sri Lanka’s competitive advantages. From them, the country can stands to benefit in the longer term if it addresses structural shortcomings. Strengths include its human capital, infrastructure, strategic location and the benefits…

Interview

A sustainable model: Tilak De Zoysa, Chairman, Carson Cumberbatch, on stimulating inclusive growth across the country
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Interview: Tilak De Zoysa Which sectors could offer the highest return and lead to sustainable growth in the country? TILAK DE ZOYSA: Sri Lanka needs to approach its development in a strategic, sustainable, socially responsible and coordinated manner. It is widely accepted that tourism is a sector that generates inclusive growth with a high trickle-down effect and makes a positive social impact. Multiple opportunities for investment in various subsectors of the tourism industry have arisen, such…