[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-112742-en":3,"doc-seo-112742-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},112742,687197207057,"Sage","https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0",8,"Research & Report","Sri Lanka - Country Partnership Framework for the Period FY2026 - FY2030 - Annex 5 - Streamlined 2025 Systematic Country Diagnostic","Streamlined 2025 Systematic Country Diagnostic updates Sri Lanka’s development and economic context for FY2026–FY2030, building on the 2022 SCD’s seven priority reform areas. It reviews progress and reprioritizes reforms amid a deep economic crisis, a major political transition in late 2024, and the November 2025 Cyclone Ditwah disaster. The framework highlights the jobs challenge—300,000 new jobs versus nearly one million youth entrants—emphasizing cross-cutting reforms to raise exports, private investment, and productivity while addressing poverty, governance, resilience, and human capital gaps.","Public Disclosure Authorized Public Disclosure Authorized  \nV. Streamlined 2025 Systematic Country Diagnostic for Sri Lanka  \n1. The 2022 Systematic Country Diagnostic (SCD) Update identified seven priority reform areas for eliminating poverty and boosting shared prosperity. These were: (i) addressing the fiscal challenge to ensure macroeconomic stability, (ii) fostering competitiveness to accelerate growth and job creation, (iii) strengthening human capital to improve productivity and social inclusion and closing the gap in access to basic services, (iv) supporting vulnerable groups and lagging regions,(v) promoting productivity-enhancing investments in agriculture and sustainable rural businesses, (vi) managing natural capital and building resilience to climate change, and (vii) strengthening governance and public financial management.  \n2. This streamlined SCD assesses Sri Lanka’s current economic and development context, reviews progress on the seven reform areas and proposes an updated reform reprioritization. While many of Sri Lanka’s underlying development challenges remain the same, much has changed since 2022. This includes a deep economic crisis that has caused a significant increase in poverty and deterioration in shared prosperity; a major political transition in late 2024 following a period of instability; and, more recently, a severe natural disaster in November 2025 (Cyclone Ditwah) that has caused significant damage.  \n3. Boosting growth and creating jobs is the key challenge for the country. At current growth rates, Sri Lanka is on track to create only 300,000 new jobs over the next decade, far less than the nearly 1 million young people that will enter the workforce over the same period. Higher growth will need to be underpinned by increased exports, private sector-led investment, and substantial increase in productivity. This SCD proposes a set of cross-cutting reforms to meet this growth and jobs challenge. While these reforms do not focus on specific economic sectors, this does not preclude targeted operational interventions in targeted growth-critical sectors.  \n1. Country Context and Recent Developments  \n4. Sri Lanka is still emerging from its worst economic crisis since independence, which led to a sharp rise in poverty and vulnerability. Long-standing structural weaknesses, fiscal and monetary policy missteps, and exogenous shocks led to the crisis. Consequently, the government defaulted on its international sovereign debt in April 2022. The economy shrank by a cumulative 9.5 percent during 2022- 23, foreign exchange reserves dropped to less than 2 weeks of imports by end-2022, inflation rose to nearly 70 percent, and real wages fell sharply. As a result, poverty rose sharply, from 11.5 percent in 2019 to 27.5 percent in 2023 at the US$4 .20 (2021 PPP) line. Spatial disparities widened, and historically poor districts and estate sectors suffered severe setbacks, while new poverty emerged in urban areas.  \n5. The immediate policy response to the crisis focused on restoring economic stability through a sharp fiscal adjustment, debt restructuring, and some foundational policy reforms. Sri Lanka’s fiscal adjustment was significant—equal to nearly 8 percent of GDP from 2022-24—underpinned by revenue improvements. Debt restructuring began in 2022 and was largely concluded by end-2024. Critical policy and legal changes were introduced, such as the new Public Finance Management Act, Public Debt Management Act, Central Bank Act, and cost-reflective energy pricing.  \n6. In response, the economy stabilized in mid-2023 and started recovering in 2024, but macroeconomic vulnerabilities remain high. The economy expanded by 5 percent in 2024, headline inflation eased to single digits in mid-2023 and was negative between September 2024 and July 2025, and usable reserves grew to US$4 .7 billion by end-2024 (compared to US$500 million by end-2022), covering three months of imports. Nevertheless, macroeconomic vulnerabil","cbCaiiXXujxeCK1B","https://ap.wps.com/l/cbCaiiXXujxeCK1B","pdf",666828,1,11,"English","en",105,"# Country Context and Recent Developments\n## Priority reform areas and updated reprioritization\n## Crisis impacts and stabilization progress\n## Welfare recovery, poverty outlook, and longer-term scarring\n## Cyclone Ditwah damage and risks\n## Growth, jobs challenge, and cross-cutting reform agenda","[{\"question\":\"What seven reform areas did the 2022 SCD identify for Sri Lanka?\",\"answer\":\"They covered fiscal stabilization, competitiveness for growth and jobs, strengthening human capital and service access, supporting vulnerable groups and lagging regions, productivity-enhancing agriculture and rural business investment, managing natural capital and climate resilience, and improving governance and public financial management.\"},{\"question\":\"How has the economic crisis affected poverty and shared prosperity since 2019?\",\"answer\":\"Poverty rose from 11.5% in 2019 to 27.5% in 2023, alongside shrinking output, reserve depletion, inflation near 70%, and sharp declines in real wages, widening spatial disparities.\"},{\"question\":\"Why does the document emphasize boosting growth and job creation?\",\"answer\":\"Growth and jobs are seen as the central challenge: current rates imply only about 300,000 new jobs over the next decade, far below the nearly one million young people entering the workforce, requiring higher exports, private investment, and productivity gains.\"}]",1784496966,28,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"sri-lanka-country-partnership-framework-for-the-period-fy2026-fy2030-annex-5-streamlined-2025-systematic-country-diagnostic","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/sri-lanka-country-partnership-framework-for-the-period-fy2026-fy2030-annex-5-streamlined-2025-systematic-country-diagnostic/112742/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What seven reform areas did the 2022 SCD identify for Sri Lanka?","Question",{"text":75,"@type":76},"They covered fiscal stabilization, competitiveness for growth and jobs, strengthening human capital and service access, supporting vulnerable groups and lagging regions, productivity-enhancing agriculture and rural business investment, managing natural capital and climate resilience, and improving governance and public financial management.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How has the economic crisis affected poverty and shared prosperity since 2019?",{"text":80,"@type":76},"Poverty rose from 11.5% in 2019 to 27.5% in 2023, alongside shrinking output, reserve depletion, inflation near 70%, and sharp declines in real wages, widening spatial disparities.",{"name":82,"@type":73,"acceptedAnswer":83},"Why does the document emphasize boosting growth and job creation?",{"text":84,"@type":76},"Growth and jobs are seen as the central challenge: current rates imply only about 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