Sri Lanka’s Economic Crisis: Internal and External Dimensions 

Thursday, May 26, 2022, 4:30 pm – 6:00 pm Indian Standard Time (IST)  

The Centre for Social and Economic Progress (CSEP) hosted the third Sambandh Policy Dialogue on regional connectivity. 

This time, in partnership with Verité Research, we focussed on Sri Lanka and discuss possible ways out of the dire economic situation there, including regional ramifications. We were honoured to host Dr. Indrajit Coomaraswamy, former Governor of the Central Bank of Sri Lanka, as our guest speaker on Sri Lanka’s Economic Crisis: Internal and External Dimensions. This took place online on Thursday, May 26, from 4:30 P.M. to 6:00 P.M Indian Standard Time (IST). 

Sri Lanka’s current economic and political crisis is rooted in deteriorating fiscal and external account deficits aggravated by decreasing foreign exchange reserves, a lack of tourism exports, supply chain disruptions, and shrinking foreign remittances. In February 2022, Sri Lanka was left with only $2.31 billion in its reserves but faced debt repayments of around $4 billion in 2022. 

A path to economic recovery now hinges on complex negotiations with the International Monetary Fund, as well as India, China, Japan and others. Dr. Coomaraswamy will share his perspective on the possible ways out for Sri Lanka and the role that regional and global partners could play in the next few months.

The Sambandh Policy Dialogue on Regional Connectivity is an online, private, and off-the-record forum for policy-makers and experts to exchange perspectives on connectivity and geo-economic relations between India, South, and Southeast Asia, the Bay of Bengal, and the Indo-Pacific regions. It seeks to correct the knowledge gap between different countries and stakeholders invested in deepening regional cooperation and integration, mainly between South Asia and ASEAN countries.

All content reflects the individual views of the speakers. The Centre for Social and Economic Progress (CSEP) does not hold an institutional view on any subject.