Publication: Sri Lanka Development Update, April 2024: Bridge to Recovery
Loading...
Files in English
5,178 downloads
Published
2024-04-02
ISSN
Date
2024-04-01
Author(s)
Editor(s)
Abstract
The Sri Lankan economy has shown early signs of stabilization with improved fiscal and external balances, supported by a recovery in remittances and tourism and the continued debt service suspension. However, this will be insufficient to reverse crisis-induced welfare losses as poverty levels remain elevated. The narrow path to restoring growth and prosperity will hinge on a successful debt restructuring, adequate support to the most poor and vulnerable, and continued reform implementation despite upcoming elections.
Link to Data Set
Citation
“World Bank. 2024. Sri Lanka Development Update, April 2024: Bridge to Recovery. © World Bank. http://hdl.handle.net/10986/41338 License: CC BY-NC 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Sri Lanka Development Update, April 2025: Staying on Track(Washington, DC: World Bank, 2025-04-23)The Sri Lanka Development Update (SLDU) has two main aims. First, it reports on key developments over the past 12 months in Sri Lanka’s economy, places these in longer term and global contexts, and updates the outlook for Sri Lanka’s economy. Second, the SLDU provides a more in-depth examination of selected economic and policy issues. It is intended for a wide audience, including policymakers, business leaders, financial market participants, think tanks, non-governmental organizations and the community of analysts and professionals interested in Sri Lanka’s evolving economy. The report is based on published data available on or before March 18, 2025.Publication Sri Lanka Development Update, October 2024(Washington, DC: World Bank, 2024-10-24)The Sri Lanka Development Update (SLDU) has two main aims. First, it reports on key developments over the past 12 months in Sri Lanka’s economy, places these in longer term and global contexts, and updates the outlook for Sri Lanka’s economy. Second, the SLDU provides a more in-depth examination of selected economic and policy issues. It is intended for a wide audience, including policymakers, business leaders, financial market participants, think tanks, non-governmental organizations and the community of analysts and professionals interested in Sri Lanka’s evolving economy.Publication Nepal Development Update, April 2024(Washington, DC: World Bank, 2024-04-02)Nepal’s economy saw improved growth in the first half of FY24 (H1FY24) compared to FY23, supported by the services sector, helping its economic growth rebound from a low of 1.9 percent in FY23 to a forecast of 3.3 percent in FY24. Accommodation and food services led the way, fueled by a significant rise in tourist arrivals. Financial and insurance activities also expanded, although there was a contraction in wholesale and retail trade. The industrial sector contributed to growth as well, supported by higher hydroelectric production. In agriculture, there was an increase in paddy production, aided by improved seed availability and favorable weather conditions. Private consumption drove growth on the domestic demand side, supported by a substantial increase of remittance inflows. However, since H1FY21, remittances growth has not supported higher imports of consumption goods. Private investment remained sluggish, as evidenced by decreased imports of capital and intermediate goods. On the other hand, public consumption and investment contracted, driven by austerity measures and lower revenue collection. To mitigate the revenue shortfall, the government adjusted its FY24 budget downward through mid-term reviews, revising both revenue and spending targets. Moreover, there is also the need for improved budget execution efficiency, especially for sub-national governments whose budget execution rates have lagged the federal government’s. Despite a small increase in public debt, it remains moderate and sustainable, supported by a significant share of concessional external loans and prudent fiscal management.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.Publication Chad Economic Update April 2024 - Special chapter Hosting Refugees in an Inclusive Manner(Washington, DC: World Bank, 2024-07-16)The Chad Economic Update is a World Bank report series produced once a year, that assesses recent economic and social developments and prospects in Chad. The Economic Update also provides an in-depth examination of a selected policy issue, outlining its current challenges and potential going forward. It is intended for a wide audience, including policy makers, business leaders, financial market participants, and the community of analysts and professionals engaged in Chad’s evolving economy.
Users also downloaded
Showing related downloaded files
Publication Women, Business and the Law 2023(Washington, DC: World Bank, 2023-03-02)“Women, Business and the Law 2023” is the ninth in a series of annual studies measuring the laws and regulations that affect women’s economic opportunity in 190 economies. The project presents eight indicators structured around women’s interactions with the law as they move through their lives and careers: Mobility, Workplace, Pay, Marriage, Parenthood, Entrepreneurship, Assets, and Pension. The 2023 edition identifies barriers to women’s economic participation and encourages reform of discriminatory laws. This year, the study also includes research, a literature review, and analysis of 53 years of reforms for women’s rights. Examining the economic decisions that women make throughout their working lives as well as tracking regulatory changes from 1970 to today, the study makes an important contribution to research and policy discussions about the state of women’s economic opportunities. By presenting powerful examples of change and highlighting the gaps still remaining, “Women, Business and the Law 2023” is a vital tool in ensuring economic empowerment for all. Data in “Women, Business and the Law 2023” are current as of October 1, 2022.Publication Middle Trade and Transport Corridor(Washington, DC: World Bank, 2023-11-26)The Middle Corridor (MC) is a multimodal transport corridor connecting China to Europe, which has been receiving elevated attention following Russia’s invasion of Ukraine. The MC links China, and Kazakhstan by rail through Dostyk or Khorgos/Altynkol, crosses Kazakhstan by rail to the Aktau Port, crosses the Caspian Sea to the Port of Baku/Alyat, and Azerbaijan and Georgia by rail to then either continue by rail to Europe through Türkiye or crossing the Black Sea. Due to inefficiencies and infrastructure gaps in Türkiye, the Black Sea route is currently preferred by operators. This report focuses on the route traversing Kazakhstan, Azerbaijan, and Georgia; a subsequent study will focus on Türkiye. The MC, with its numerous border crossings, transshipments between modes and operational inefficiencies, takes three times longer than the Northern route (via Russia) and is comparable in duration to the maritime route. As a result, it has consequently held a lower priority for long-distance trade.Publication Expanding Opportunities: Toward Inclusive Growth(World Bank, Washington, DC, 2023-04-04)South Asia’s outlook is shaped by both good and bad news in the global economy. Lower commodity prices, a strong recovery in the services sector, and reduced disruptions in value chains are aiding South Asia’s recovery but rising interest rates and uncertainty in financial markets are putting downward pressure on the region’s economies. Countries in South Asia, especially those with large external debt, face difficult tradeoffs as they respond to these pressures. Growth prospects have weakened, with large downside risks in most countries given limited fiscal space and depleting foreign reserves. Going forward, broad reform programs, including a sustainable fiscal outlook, are needed to put South Asia on a more robust and inclusive growth path. Inequality of opportunity, which is higher in South Asia than in other regions of the world, is both unfair and inefficient. Reducing inequality of opportunity and increasing economic mobility will help broaden countries’ tax base and boost support from the population for the critical reforms.Publication Working Without Borders(Washington, DC: World Bank, 2023-07-24)Online gig work poses both opportunities and challenges for governments and workers. On the upside, it offers prospects for income generation, especially in developing countries, where most people work in low-productivity, low-quality, often informal jobs. The virtual and often temporary nature of gig work also provides flexibility for often neglected groups such as women, youth, migrants, and people with disabilities. These jobs could be a stepping-stone to bet¬ter-quality jobs for low-skilled workers by helping them learn critical digital skills and close the digital divide. But most gig jobs offer little to no protection for workers, with uncertain income streams and no clear career pathways. Depending on local labor regulations, many gig workers are not protected against unfair practices, abuse or injuries while working. Gig work also raises challenges for managing data security and privacy. The report examines how countries can navigate the promise and perils of online gig work. It reveals that the online gig workforce is much larger than previously assumed with an estimated 154 million to 435 million Online gig workers around the globe. For the first time ever, the report mapped and tracked regional platforms and gig workers who work in languages other than English. Key messages are: • Online gig work is expanding, accounting for up to 12% of the global labor force and is a growing source of income for millions. • Demand for online gig workers is rising faster in developing countries than in industrialized countries. • Local gig platforms play a vital role in the local labor market, but they face challenges in establishing a viable business model, and opportunities for long-term growth. • Online gig work can support inclusion by providing work opportunities for youth, women, and low-skilled workers. • Gig workers, like most other informal sector workers in developing countries, are often outside the purview of labor regulations. • The gig economy can offer opportunities locally to build digital skills, increase income-earning opportunities, and facilitate social protection coverage of informal workers.Publication Western Balkans 6 Country Climate and Development Report(Washington, DC: World Bank Group, 2024-07-16)This Regional Western Balkans Countries Climate and Development Report (CCDR) stands out in several ways. In a region that often lacks cohesive regional alliances, this report emphasizes how the challenges faced across countries are often common and interconnected, and, importantly, that climate action requires coordination on multiple fronts. Simultaneously, it illustrates the differences across countries, places, and people that require targeted strategies and interventions. This report demonstrates how shocks and stressors re intensifying and how investments in adaptation could bring significant benefits in the form of avoided losses, accelerated economic potential, and amplified social and economic spillovers. Given the region’s high emission and energy intensity and the limitations of its current fossil fuel-based development model, the report articulates a path to greener and more resilient growth, a path that is more consistent with the aspiration of accession to the EU. The report finds that the net zero transition can be undertaken without compromising the economic potential of the Western Balkans and that it could lead to higher growth than under the Reference Scenario (RS) with appropriate structural reforms.