Policy analysis

The Trump administration’s focus on Mexico and Canada reflects the fact that they, along with China, are by some distance America’s major source of goods imports, each accounting for in excess of $400 billion in 2023.

As Sri Lanka navigates these complex international relationships, concerns persist about the nation's sovereignty and its ability to maintain a balanced foreign policy amidst mounting external pressures.

The government has committed to ambitious renewable energy targets – 50 per cent power generation from renewables by 2030 and net-zero emissions by 2070. Coal remains indispensable in the short term. Plans to nearly double coal production by 2030 reflect the urgency to meet rising energy demands.

If current trends continue, Oxfam predicts that five trillionaires will emerge within the next decade. In stark contrast, the number of people living in poverty has remained nearly unchanged since 1990.

With vegetable inflation exceeding 40 per cent, consumers face the brunt of soaring costs, while weak market monitoring and governance exacerbate the issue.

Sri Lanka’s central bank embraced deflationary measures that allowed currency appreciation and restored external stability. Critics argue, however, that these gains may be short-lived without structural reforms and tighter inflation targets.

Case studies from Ethiopia, Mexico, and the Netherlands highlight how targeted actions, informed by robust governance and a focus on resilience, can catalyse broader progress.

For UNDP, this is not only an area that requires urgent action but also a natural point of thematic convergence that brings together two of our areas of expertise: climate action and governance.