Beyond recovery: new book offers Sri Lanka a roadmap to economic transformation

• Leading experts provide policy proposals to shift Sri Lanka’s trajectory from debt to growth ahead of crucial elections

As Sri Lanka gears up for pivotal Presidential elections on 21 September, a timely new book, “Sri Lanka: from debt default to transformative growth”, provides a comprehensive roadmap to propel the nation beyond economic stabilisation and into a future of sustainable, equitable economic transformation and progress.

Launched recently by ODI global affairs think tank, just a month before the polls, this collection of essays features contributions from renowned Sri Lankan and international experts delivering 27 concrete proposals on how to steer the country from debt distress to a path of lasting economic prosperity.

The book comes in the wake of Sri Lanka’s unprecedented 2022 economic crisis, marked by a sovereign debt default and widespread hardship for the people. While the country has recently shown promising signs of recovery and resilience, the book’s contributors argue that a bolder approach is needed – one that goes beyond mere recovery and stabilisation, and lays the foundation for long-term, inclusive growth.

The essays offer a multi-pronged approach to economic transformation, including:

• Building a cross-party consensus on economic direction to ensure policy consistency and foster investor confidence
• Ensuring external and domestic debt sustainability through proactive debt management and strengthened legal frameworks
• Strengthening the Central Bank’s independence to enable effective monetary policy and financial stability
• Supporting fiscal sustainability through transparent budgeting, spending controls and better tax administration.
• Undertaking pragmatic efforts to support economic transformation by streamlining business regulations and promoting trade through entry into supply chains and trade deals and facilitating investment.
• Making growth inclusive by prioritising targeted social protection, safety nets and food security

Dr. Ganeshan Wignaraja, Visiting Senior Fellow at ODI and the co-editor of the book, said: “This is not the time for complacency. Sri Lanka has made impressive strides in stabilising its economy in the wake of the 2022 debt default and economic crisis. However, the country now faces the critical challenge of shifting its economic trajectory from one of debt distress to sustainable, equitable growth. This is not just about fixing the past, it’s about building a future where every Sri Lankan thrives. This book is a call to action for Sri Lanka’s leaders and citizens to turn this vision into reality.”

The book’s launch ahead of the elections underscores the urgency of addressing the country’s economic challenges and seizing the opportunities for growth and transformation. It provides a unique opportunity for open dialogue and informed decision-making, urging a collective effort to steer Sri Lanka towards a brighter and more prosperous future.

Professor Dirk Willem te Velde, Director of the International Economic Development Group at ODI, and co-editor, said: “The upcoming elections present a crucial opportunity for Sri Lanka to choose a path of sustainable and inclusive economic transformation, and the path forward is clear. The proposals presented in this essay series by leading experts on the Sri Lankan economy are actionable steps that, if implemented, have the potential to set the nation on a path toward lasting prosperity. We hope this work will serve as an indispensable resource for policymakers, and the public alike, as they navigate this critical juncture.

The book, Sri Lanka: from debt default to transformative growth, is available for download via the ODI website at https://odi.org/en/publications/sri-lanka-from-debt-default-to-transformative-growth. Printed copies will be available in bookstores across Colombo from the end of September.  

(https://odi.org/en/press/beyond-recovery-new-book-offers-sri-lanka-a-roadmap-to-economic-transformation/)