IPS asserts SL to advance focus on implementing action plans before jumping to another

• Notes the blue-green budget as example, which lost its slogan somewhere along the way
• Says Sri Lanka is underperforming compared to regional peers, specifically in terms of growth outlook

By Shabiya Ali Ahlam

Sri Lanka’s prominent economic think-tank, the Institute of Policy Studies (IPS), asserted that the island nation should invest much of its focus on the implementing action plans, so that it fulfills the aspired goals and get on par with its fast growing regional peers in terms of economic growth realization.“There needs to be efficiency in the implementation. That should be the focus in the interim and then (the government) can think about additional spending given that there is huge debt,” said IPS Executive Director/ Senior Economist Dushni Weerakoon during a policy dialogue session on the UNESCAP Economic and Social Survey of Asia and the Pacific 2019.

She pointed out that with Sri Lanka having a debt amounting to 85 percent of GDP, and a large chunk of it being in foreign currency, makes the country increasingly vulnerable to external shocks. 

“…the whole array of spending, particularly those targeted at improvements in the social sector, there are concerns if it reached the implementation stage,” added Weerakoon at the session that was also attended by the UN Resident Coordinator Hanaa Singer and other UN agency heads. The economic policy research institute chief also drew attention to the fact that often observed is the government’s tendency to lose focus in its agenda, eventually moving on to another thematic area before the current reaches completion.

“We started with the blue-green budget and that seems to have lost the slogan somewhere along the way. The implementation of budget proposals and outcomes is just as important,” said Weerakoon while referring to areas that have further room for improvement. 

From a regional perspective, the economist noted that while the Asia Pacific is well poised for economic growth and macro stability, there are pressures in terms of the fiscal situation faced by many countries.

She noted that Sri Lanka is underperforming compared to its regional peers, specifically in terms of growth outlook, she asserted it is imperative to look at having efficient investments in education and healthcare, amongst others. 

Meanwhile the UNESCAP survey report stated that the APAC region is in need of further investments to close infrastructure gaps in order to improve the sub-region’s connectivity and to keep up with the rapid urbanization process. Noting that the gains from economic growth are not being shared by all, the available jobs do not fully translate into decent work. Furthermore, it was pointed out that slowing productivity growth can adversely affect long-term prospects. 

“Challenges to sustainable development are being met with external shocks. Uncertainties with regard to trade tensions and global liquidity conditions could weigh on investor and consumer confidence, weaken foreign and domestic demand and impose further financial stress on the Asia-Pacific region,” the report highlighted.