ICCSL webinar, titled “A Smarter Sri Lanka: Public Priorities for the 9th Presidency”, held on Saturday, 31 August,
underscored the critical importance of stability, continuity, and the elimination of corruption. A firm commitment to the reform agenda was highlighted as essential for Sri Lanka’s full economic recovery.
The panel of experts agreed that achieving these objectives is crucial for laying a solid foundation for sustainable growth, boosting investor confidence, staying the course, and ensuring that the benefits of recovery are equitably shared across all sectors of society
Sri Lanka’s biggest economic challenge lies in managing its high levels of debt while simultaneously addressing the underlying structural weaknesses in the economy.
In recent months, the country has faced a public debt burden exceeding 100% of GDP, with a significant portion of that debt being external and raised on non-concessional terms.
This has resulted in difficulties servicing debt, accessing international markets, and securing new financing.
Sri Lanka has a long history of Balance of Payments (BOP) deficits. Persistent current account deficits, driven by a lack of export diversification, heavy reliance on imports, and a decline in foreign exchange reserves, have continuously strained the economy.
Recently, the Sri Lankan rupee has also experienced severe depreciation from time to time, leading to inflation and higher import costs, which have further squeezed the public and contributed to the rising cost of living.
Additionally, political instability and corruption have eroded investor confidence over the years, stalling much-needed reforms and sometimes discouraging foreign direct investment (FDI), which is essential for long-term growth. Addressing these challenges requires strong fiscal and monetary policy measures, political stability, strong leadership, and international support to build a more resilient and sustainable economy.
Achieving this will demand leadership at the highest levels of competence and a commitment to maintaining the stability we currently have.
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