ISAS Insights

Optimism in Sri Lanka following the end of Mahinda Rajapaksa's presidency in 2015 saw civil and political freedoms liberalised, ethnic relations improved, and foreign relations with China and India rebalanced. However, the government's scorecard in managing the economy has been disappointing, with analysts pointing to large excesses in fiscal and monetary policymaking. This has arguably contributed to a slowing economy and mounting debt. This paper emphasises the need for the government to boost exports and foreign investments, revamp the tax system and lower barriers to competition in key domestic sectors to improve the economy.