Economy

Sri Lanka Economy

The Sri Lankan economy has been growing well recently despite a degree of political uncertainty and the global slowdown in emerging markets, with GDP expanding on average more than 6% since 2010. The new government inherited an economy with great potential but burdened by debt and lacking the types of investment to see it through to the next stage. Accelerating growth is now necessary, not only in order to pay down its debts but also to avoid the middle-income trap. Sri Lanka has developed new avenues for significant expansion, such as its burgeoning tourism sector, and investments in shipping and infrastructure. If the country can build on the steps it has already taken, there is no reason why it should not continue to prosper.

This chapter contains interviews with Ravi Karunanayake, Minister of Finance and Planning; Kabir Hashim, Minister of Public Enterprise Development; Ajit Gunewardene, Deputy Chairman, John Keells Holdings; and Mohan Pandithage, Chairman and Chief Executive, Hayleys.