Sri Lanka: Selected Issues

IMF Staff Country Reports, June 20, 2018

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The government aims to achieve upper middle-income country status in 2025 by transforming Sri Lanka into an Indian Ocean Hub for trade, investment, and services.
The paper emphasizes that stable and transparent regulatory systems would make Sri Lanka’s business environment more attractive for long-term investment and support trade integration.
Ongoing open consultative processes on reform strategies can help build public consensus in support of the transformation objectives.

Reviewing trade barriers and developing a phased and sequenced strategy for gradual removal of restrictions is identified as a first necessary step toward enabling more competitive trade.
The authorities’ decision to gradually rationalize para-tariffs and set up automated approval systems is described as a welcome step.
Stable, transparent regulation is highlighted as key to attracting long-term investment and supporting trade integration.

Implement a phased and sequenced strategy for gradual removal of trade restrictions.
Rationalize para-tariffs gradually.
Establish automated approval systems for trade-related approvals to reduce opacity and delays.
Maintain open consultative processes to build public consensus around reform strategies.

Subject areas listed: Credit, Environment, Fiscal policy, Fiscal rules, Gender, Gender inequality, Money, Natural disasters, Women.
Keywords included: Africa, Caribbean, cash support, child care, CR, Credit, credit growth, disaster financing risk, East Asia, financing, Fiscal rules, Gender inequality, Global, government, ISCR, Natural disasters, rule, South Asia, Sri Lankan authorities, Women.