The Sri Lanka Development Update has twomain aims. First, it reports on the key developments overthe past six months in Sri Lanka’s economy, and places thesein a longer term and global context. Based on thesedevelopments, and on policy changes over the period, itupdates the outlook for Sri Lanka’s economy and socialwelfare. Second, the Update provides a more in-depthexamination of selected economic and policy issues, andanalysis of medium-term development challenges. It isintended for a wide audience, including policymakers,business leaders, financial market participants, and thecommunity of analysts and professionals engaged in SriLanka’s evolving economy.