Executive Summary
The Asian Development Bank (ADB) Deputy Country Director, Utsav Kumar, identified five key areas that Sri Lanka must focus on to succeed in the Extended Fund Facility (EFF) extended by the IMF. These areas include a social safety net, a proper communication strategy, reform transparency on State-Owned Enterprises (SOEs), staying the course avoiding pitfalls, and looking beyond the four years of EFF to stabilize the economy. Kumar emphasized that addressing the root causes of Sri Lanka’s internal and external imbalances is critical and requires an unwavering commitment to reforms.
The Sri Lankan economy must remain resilient to internal and external shocks, and exploring multiple industries will help achieve this goal. Kumar identified agribusiness, manufacturing, gems, ICT, and tourism as potential sectors for growth in 2023 and 2024. He noted that continued progress on the IMF program remains key to successfully overcoming the economic crisis, while debt restructuring and negotiations will be the next few hurdles for Sri Lanka.
