Economic Outlook for Sri Lanka

Policy options to address fiscal and public debt challenges Debt relief Bilateral debt service • suspension and restructuring Debt swaps for development • . • Fiscal space Better and effective tax administration Progressive income tax Taxing carbon emissions and digital economy Rationalized tax privileges • Spending efficiency • . Deficit financing Green or social sovereign bonds • Leveraging diaspora savings • Emergency financing National reserve funds ⚫ Catastrophe insurances ESCAP MOVING FORWARD TOGETHER Public debt management • Medium-term debt management framework Contingent liabilities from state-owned enterprises

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