Building Resilience: How Sri Lanka Can Prepare for Future Economic Shocks

As a CEO in Sri Lanka, I’ve witnessed firsthand the devastating impact of recent economic shocks. The 2022 GDP decline of 9.2% was a stark reminder of our economy’s fragility and the need for urgent action. While the pandemic and global events played a significant role, we must also acknowledge the internal factors that exacerbated the crisis.

The Sri Lanka Economic story is not just about numbers; it’s about the human cost. Businesses shutting down, livelihoods lost, and rising prices impacting every household — these are the harsh realities that underscore the need for a more resilient economy, one that can withstand future storms.

Building resilience is not a one-time fix; it’s a continuous journey requiring collective effort. Here are some crucial steps we can take:

1. Diversification is Key: Overdependence on tourism and imports proved detrimental during the pandemic. We need to invest in agriculture, manufacturing, and renewable energy to create a more self-sufficient and export-oriented economy. This will reduce our vulnerability to external shocks and create new jobs.

2. Fiscal Responsibility is Non-Negotiable: Sound fiscal management is critical for building economic stability. We must prioritize prudent budgeting, efficient tax collection, and responsible debt management to create fiscal space for investing in vital infrastructure and social safety nets during times of crisis.

3. Investing in People: A skilled and educated workforce is the bedrock of a resilient economy. We need to invest in education and training programs that equip our youth with the skills needed to thrive in the 21st century. This includes fostering entrepreneurship and innovation, encouraging digital literacy, and promoting STEM education.

4. Strengthening Social Safety Nets: Vulnerable populations bear the brunt of economic downturns. We need to strengthen social safety nets, including healthcare, education, and social security programs, to protect those most at risk and prevent further hardship during times of crisis.

5. Building Strong Institutions: A robust legal framework, transparent governance, and an independent judiciary are essential for attracting investment and fostering a stable business environment. By combating corruption and upholding the rule of law, we can create an environment conducive to economic growth and long-term stability.

6. Embracing Technology: Technology is not just a driver of growth; it’s a tool for resilience. We need to invest in digital infrastructure, promote e-commerce and online learning platforms, and encourage the use of technology in traditional businesses to enhance efficiency and competitiveness.

The Sri Lanka Economic story is not written yet. We have a unique opportunity to learn from past mistakes and build a more resilient future. By prioritizing diversification, fiscal responsibility, investing in people, strengthening social safety nets, building strong institutions, and embracing technology, we can create an economy that can withstand future shocks and ensure a brighter future for all Sri Lankans.

This is a call to action for all stakeholders — the government, the private sector, and civil society. Let’s come together with a shared vision and unwavering commitment to build a resilient Sri Lanka Economic story, one that stands tall against any storm.

Together, we can build a Sri Lanka that is not just prosperous, but also prepared for whatever the future holds.