Spotlight: Econ Op-eds in Summary (Week ended 12th February'20)
1. The 2030 economic precipice for Sri Lanka
By: Waruna Singappuli
· Since the Sri Lankan economy is import dependant, we have to borrow heavily to finance our import bill. Being a middle-income country, concessionary loan facilities have dried up, eroding our debt servicing capacity making import restrictions a certainty in the future. Additionally, smart and practical strategies are needed to escape the middle-income trap which would curtail our economic progress.
· Slow economic progress could lead to social and political unrest along with brain drain which will leave the country in a vicious cycle. The Sri Lankan economy needs to shift from being an import driven – consumption based economy to an investment driven - export based one. However sudden import restrictions are not recommended. It should be planned, and the direction should be provided by the Government.
· Sri Lanka should utilise its strategic position to negotiate with world powers to get new technologies and markets for our products. This is the best way to leapfrog the economy. The Government should also invest in the labour force needed to boost foreign currency earning segments. That should happen even at the expense of a higher fiscal deficit.
(Compiled by: Chayu Damsinghe & Asel Hettiarachchi)
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