Macroeconomic Impact of COVID 19 and Policy Choices for Sri Lanka

Macroeconomic Impact of COVID 19 and Policy Choices for Sri Lanka

PF Occasional Paper by Senior Visiting Fellow of Pathfinder Foundation & Senior Research Associate of Overseas Development Institute UK, Ganesh Wignaraja on macro impact of covid-19 in Sri Lanka including 3 policies to emerge stronger, more inclusive and greener.

Three key policies:

  1. Fiscal stimulus targeted towards green investment / gender-sensitive expenditure produces higher growth than other scenarios
  2. Concluding deep bilateral FTA with India + goods BIMSTEC FTA brings larger export gains to Sri Lanka than a goods FTA China
  3. The Colombo Port City SEZ can be a game changer for modern services development provided Sri Lanka implements a competitive SEZ framework and conducive national policies to attract FDI.
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