Sri Lanka, Sept. 9 -- Sri Lanka has made remarkable strides in stabilizing its economy, undertaking one of the largest fiscal adjustments in its history-equal to nearly 8 percent of GDP over three years. The adjustment was also sharper and faster by international standards - when compared with more than 330 similar efforts in 123 countries worldwide since 1980. A new World Bank review of Sri Lanka's public finances released today says the country is now well-positioned to focus on making public finances work better for all Sri Lankans.
The World Bank's Sri Lanka Public Finance Review: Towards a Balanced Fiscal Adjustment finds that while fiscal measures helped restore stability, they also put pressure on households through higher indirect ...