SL told to look outside its shores to overcome twin deficit crisis

• WB says it’s about competitiveness and finding sources of growth, exploiting opportunities through greater global value chains in number of areas
• Notes pandemic exposed vulnerabilities of the country’s informal sector as well as the vast opportunities it can tap into

By Nishel Fernando

Sri Lanka needs to look outside its shores to navigate out of the twin-deficit crisis (fiscal and current account deficits) stronger by focusing on untapped potential in its vast informal sector and service exports, which present enormous opportunities, according to the World Bank (WB).

Sri Lanka is a beautiful island. It is strategically positioned, not only physically, but also intellectually and trade-wise with the rest of the world. So, the future lies of outside the shores of Sri Lanka. For that, it’s about competitiveness and finding sources of growth, exploiting opportunities through greater global value chains and greater additionalities in number of areas. In the absence of that, you will be bound to the shores of the country to some extent.