Global trade is entering a period of turmoil that is likely to be more acute and more challenging than during the Covid-19 pandemic five years ago. Smaller economies like Sri Lanka that depend on international markets and who have benefited from a relatively predictable international trading system, will be worst affected. In this context, CSF's latest Policy Note outlines 8 key trade and competitiveness reforms and strategic initiatives that Sri Lanka must now prioritize, to build resilience and success.

As Sri Lanka's new government looks to revise the country’s investment framework, understanding current global trends and best practices will be crucial. Anchored to global investment policy trends identified by the UNCTAD in a recent report, this Policy Brief presents seven observations stemming from a comparison of these global trends against the investment-related provisions of the Economic Transformation Act (ETA) passed in 2024.

Sri Lanka needs to become much more open to, and informed about, the new sources and mechanisms that are available for biodiversity financing. With the right domestic mechanisms, a credible policy commitment, open-mindedness among government and non-government stakeholders, and a nuanced view of the financing options, Sri Lanka can rise up to meet the challenge.

CSF’s latest Policy Brief looks at the implications of selected aspects of the European Green Deal for Sri Lanka’s exports. We flag four areas for action -Government support, Public-private partnerships, International cooperation and bilateral engagement, and Industry support to SMEs.

Sri Lanka is yet to give dedicated national priority to this agenda, unlike several other countries that have placed it at the heart of public policies on TVET and employment. The country must build on the recognition given to green jobs in its Climate Prosperity Plan, and articulate a clear and future-oriented ‘Green Jobs Strategy’.

There is now a growing interest in Sri Lanka on the concepts and prospects for green finance among Sri Lankan policymakers, regulators, and financial intermediaries, and some initial steps have been made to orient towards green lending. Yet, how far has actual implementation come and what are the prospects for the near-term? What are some of the critical issues that the financial sector must contend with, as it aims to support investments in a climate-resilient and nature-positive economic recovery?

Emerging Sri Lankan public policy leaders have come together to form the country’s first platform for professional development and networking towards advancing better public policy capabilities. The Young Professionals in Public Policy (YPPP) was launched in May 2023, and is an initiative of the Centre for a Smart Future. The YPPP is much more reflective of the contemporary public policy space in Sri Lanka.

Sri Lanka must consolidate its enterprise-support agencies into one single agency, that is smaller, sharper, and with a clear and unambiguous mandate - to improve SME competitiveness towards creating more export-ready and near export-ready firms. The need of the hour is not generic SME development and enterprise support initiatives.

This article serves to provide an international reader with a more useful reference point for the recent origins, evolution, and dimensions of Sri Lanka’s economic crisis, and selected perspectives on the policy issues and path ahead, from an economist’s perspective.

The East Asia Forum, a joint initiative of the East Asian Bureau of Economic Research and the South Asian Bureau of Economic Research, reports on Sri Lanka's political turmoil, economic downturn, and potential sovereign debt default, highlighting the country's vulnerability to external shocks.

Sri Lanka needs to focus on enhancing technology access, usage, and literacy across the board, to help workers be better prepared for jobs in the technology sector. Without it, Sri Lanka’s ambitions for digital-led development will leave youth behind.

Sri Lanka’s apparel industry – a significant export revenue earner and employer – was substantially hit by the pandemic. Moving from recovery to resilience and a new phase of growth will be shaped by three key trends.