Financial News Update: Today, the Sri Lankan economy is at a crossroads. Decades of policymaking as a sovereign nation have produced improvements in many aspects of the economy. There was significant social upliftment.
Nevertheless, tough challenges remain – below potential growth, the persistence of poverty pockets, underutilization of productive resources, inadequate expansion and diversification of exports, shortfall of non-debt creating capital inflows, large credit and interest rate cycles, and high fiscal deficits and public debt levels.
These challenges, which have been the outcomes of policy as well as non-policy factors, need to be addressed decisively for the economy to takeoff to a high and sustainable growth path. It is also essential that the benefits of such high growth are distributed fairly across society and opportunities are created for all, leading to a more prosperous, happy and content nation, with equitable distribution of incomes and opportunities. Such an outcome needs innovative policies emanating from and backed by fresh innovative thinking.