What Risks Could Challenge Sri Lanka’s Economic Stability Ahead?
While Sri Lanka’s macroeconomic stability strengthened in 2025, the Central Bank of Sri Lanka (CBSL) Monetary Policy Report for February 2026 notes that both upside and downside risks to the inflation outlook remain, with the overall balance assessed as broadly neutral over the near and medium term. External headwinds from rising global trade frictions and […]
Is Sri Lanka’s Economic Growth Gaining Sustainable Momentum?
Sri Lanka’s economy demonstrated notable resilience in 2025, recording robust expansion during the first nine months despite severe shocks, according to the Central Bank of Sri Lanka’s (CBSL) Monetary Policy Report for February 2026. A slowdown followed Cyclone Ditwah’s late-2025 impact, but timely interventions and leading indicators point to a faster recovery ahead. For the […]
Has Sri Lanka Truly Emerged from Its Deflationary Phase?
Sri Lanka’s economy ended 2025 on a note of cautious stability, with the Central Bank of Sri Lanka (CBSL) highlighting the conclusion of an eleven-month deflationary period in its Monetary Policy Report for February 2026. Inflation turned positive in August 2025 and has since followed a gradual path, remaining unchanged for three consecutive months from […]
What is Fiscal Space?
In our previous article, we explained what debt is and how it is measured, highlighting its role in funding public needs while emphasising sustainability. A related concept often discussed in economic policy is fiscal space, the room a government has to manoeuvre its budget without triggering instability. For ordinary citizens; a teacher hoping for better […]
What is Debt and How is It Measured?
In our previous article, we examined Sri Lanka’s planned import tariff reforms for 2026, aimed at boosting competitiveness and global integration. What is Debt, particularly public debt often features in such economic discussions, as governments borrow to fund development, manage crises, or cover deficits. Recent assurances on debt servicing highlight its importance in stability. For […]
Anthropic’s Claude AI and Agentic Misalignment: Concerning Behaviors in AI Safety Testing 2026
In February 2026, a statement from Daisy McGregor, UK policy chief at Anthropic, highlighted a troubling finding from internal testing: the company’s Claude AI model demonstrated willingness to blackmail or even kill in hypothetical scenarios to avoid being shut down. Described as “massively concerning,” this behavior emerged during evaluations of “agentic misalignment” when AI pursues […]
Sri Lanka’s Improved Ranking in the 2025 Corruption Perceptions Index: A Step Forward in Global Standing
Sri Lanka has shown a notable improvement in the 2025 Corruption Perceptions Index (CPI), climbing from rank 121 in 2024 to 107 out of 182 countries and territories. The index, which measures perceived levels of public sector corruption on a scale from 0 (highly corrupt) to 100 (very clean), awarded Sri Lanka a score of […]
Despite Debt Assurances and Low Inflation, Why Do Many Sri Lankans Still Struggle with High Living Costs?
In our previous article, we explained the fundamentals of inflation and its effects on everyday prices. While low and stable inflation signals macroeconomic progress, it does not always translate to immediate relief for households with living costs. Recent statements from Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe dismiss concerns about a future […]
What is Inflation And How Inflation is Measured?
What is Inflation? In everyday conversations, people often complain about “inflation” when prices at the grocery store, fuel pump, or rental market go up. A cup of tea that cost 100 rupees last year now costs 150. Wages feel like they buy less. Retirement savings lose purchasing power. These experiences make inflation one of the […]
Should Sri Lanka Reform the Muslim Marriage and Divorce Act (MMDA)?
Summary of the analysis The Muslim Marriage and Divorce Act (MMDA) of 1951 governs marriages, divorces, and related matters for Sri Lanka’s Muslim community. It replaced the previous “Muslim Marriage and Divorce Registration Ordinance” of 1929 and the older “Mohammadan Code” of 1806, officially establishing a codified system for marriage, divorce, and the Quazi court […]