## Sri Lanka: Selected Issues

_IMF Staff Country Reports, June 13, 2024_

## Source details

**Canonical URL:** [Sri Lanka: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/06/13/sri-lanka-selected-issues-550264)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/06/13/sri-lanka-selected-issues-550264/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/06/13/sri-lanka-selected-issues-550264/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/06/13/sri-lanka-selected-issues-550264/bundle-manifest.json)

## Bibliographic details
- Published: June 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400279492.002

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### Overview
- Publication date: June 13, 2024
- Purpose: Quantify the economic benefits of comprehensive governance reforms in Sri Lanka through model simulations, supported by selected case studies.
- Focus areas: corruption vulnerabilities and governance weaknesses in Sri Lanka; channels through which governance reforms generate economic gains.

### Methodology and Simulations
- Theoretical framework: Illustrates channels linking governance reforms to economic gains.
- Quantitative approach: Uses a dynamic general equilibrium model to simulate the macroeconomic impact of governance reforms.
- Scenario analysis: Simulates alternative reform scenarios (details of scenarios and quantitative outcomes are in the paper).

### Case Studies and Political Economy
- Complementary evidence: A section of the paper presents selected case studies in Sri Lanka to support simulation findings.
- Political economy insight: Support from the highest political level is crucial for durable success of governance reforms.
- Distributional challenge: In countries with widespread corruption, many groups may feel that they are benefitting from it, complicating reform implementation.

### Key Themes and Subject Areas
- Subjects: Corruption, Crime, Fiscal governance, Fiscal policy, International organization, Monetary policy, Revenue administration, Revenue administration transparency and accountability
- Keywords: Corruption; corruption vulnerability indices; Fiscal governance; Global; governance reform; governance weakness; growth impact of governance; mapping governance; Revenue administration transparency and accountability

### Findings, Policy Implications, and Use
- Findings: The paper aims to quantify macroeconomic gains from governance reforms through theory, model simulations, and case studies (specific quantitative results are provided in the paper).
- Policy implication: High-level political backing is essential to ensure reforms are durable and to overcome entrenched beneficiaries of corruption.
- Intended audience/use: Policymakers, researchers, and practitioners interested in governance reform, fiscal and monetary policy, and revenue administration in Sri Lanka.

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## Content in this bundle

- **Sri Lanka: Selected Issues; IMF Country Report No. 24/162; May 29, 2024**
  - [Sri Lanka: Selected Issues; IMF Country Report No. 24/162; May 29, 2024 (Markdown version)](/-/media/files/publications/cr/2024/english/1lkaea2024002.pdf.md){rel="alternate" type="text/markdown"}
  - [Sri Lanka: Selected Issues; IMF Country Report No. 24/162; May 29, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1lkaea2024002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/06/13/sri-lanka-selected-issues-550264_