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The discussion on fiscal expansion versus trade expansion in Sri Lanka highlights the ongoing debate about the best strategies to stimulate economic growth. Fiscal expansion involves increasing government spending and investment to boost domestic demand, while trade expansion focuses on enhancing export capabilities and integrating with global markets.
As Sri Lanka navigates its economic recovery, policymakers are weighing the benefits and risks of each approach, considering the country's recent fiscal challenges and the need for sustainable growth through improved trade policies and foreign investment.
Citations:
[1] https://crawford.anu.edu.au/acde/asarc/pdf/papers/2004/WP2004_10.pdf
[2] https://unctad.org/system/files/official-document/BRI-Project_RP13_en.pdf
[3] https://www.trade.gov/country-commercial-guides/sri-lanka-market-overview
[4] https://www.elibrary.imf.org/view/book/9781557755797/ch01.xml
[5] https://www.coface.com/news-economy-and-insights/business-risk-dashboard/country-risk-files/sri-lanka
[6] https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/publications/aer/2023/en/06_Chapter_01.pdf
[7] https://ustr.gov/sites/default/files/2024%20NTE%20Report.pdf
[8] https://thetaxman.ura.go.ug/?p=3091
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