Sri Lanka’s 🇱🇰 fiscal adjustment = 8% of GDP in 3 years, among the sharpest recoveries worldwide - @WorldBank

Sri Lanka’s 🇱🇰 fiscal adjustment = 8% of GDP in 3 years, among the sharpest recoveries worldwide - @WorldBank

⭕ World Bank says "Sri Lanka has made remarkable strides in stabilizing its economy" One of the largest and fastest fiscal adjustments compared to 330+ efforts in 123 countries since 1980.

⭕ The adjustment restored stability but raised indirect taxes, cut real public wages, and slowed growth through lower public investment.

⭕ Recommendations: shift toward direct taxes, introduce a minimum corporate tax, and digitize tax systems for transparency.

⭕ The report projects Sri Lanka 🇱🇰 can increase revenue by 2% of GDP by 2029 without harming growth or equity, and says the country is now positioned to strengthen public finances and improve services.

#SriLanka #EconomicRecovery