Economic Outlook for Sri Lanka

Fiscal consolidation that relies on social spending cuts could notably widen income inequality in Sri Lanka Impact of fiscal policy change (at 1% of GDP) on Gini income inequality in Sri Lanka 0.2 ESCAP MOVING FORWARD TOGETHER 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 Education Health care Direct transfers Value-added tax Source: ESCAP estimates (Survey 2022).

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