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 […]
Beyond Bags: Can Sri Lanka Embrace Sustainable Alternatives to Everyday Plastics?
Sri Lanka took a decisive step against single-use plastics in November 2025 by banning the free distribution of plastic shopping bags in retail outlets to encourage sustainable alternatives. Shoppers now pay for low-density polyethylene bags, a move that has already shown promising results. According to the Centre for Environmental Justice (CEJ), plastic bag usage has […]
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 […]
Can AI Accelerate Sri Lanka’s Digital Transformation?
Sri Lanka is stepping boldly into the digital age. The National Digital Economy Strategy 2030 targets unlocking USD 15 billion in digital value, supported by a Rs. 30 billion allocation in the 2026 budget for major digital initiatives. Yet progress remains uneven many government websites and project portals still show outdated information, broken links, and […]