Sri Lanka

Tourism, one of Sri Lanka’s key economic drivers, is set to receive $200 million. These funds will be used to protect and enhance natural and cultural heritage sites, create employment opportunities, and ensure local communities benefit directly from tourism revenues.

Papageorgiou's comments come in the wake of political shifts that have disrupted previous reform strategies. The new administration under President Anura Kumara Dissanayake has halted privatization efforts initiated by the previous government, led by Ranil Wickremesinghe.

In recent years, a series of proposed mineral extraction projects along this fragile stretch, particularly near Alampil Beach in Mullaitivu district, has triggered alarm among environmentalists, local residents, and civil society.

Government sources, however, said trade and export expansion – including talks on the stalled Free Trade Agreement between Sri Lanka and China – is likely to be high on the agenda.

The report stresses that as the world stares down the possibility of a widespread recession, the urgency for cohesive, multilateral solutions has never been greater.

Sri Lanka’s involvement in the regional initiative comes amid growing environmental concern about the country's increasing plastic waste. Like many nations in Asia, Sri Lanka has seen a surge in single-use plastics and limited infrastructure to manage them.

According to the US Trade Representative’s findings, Sri Lanka’s high tariff rates – among the world’s highest by certain metrics – along with unpredictable customs procedures and non-transparent policy shifts, have contributed to strained trade relations.

India played a key role as a co-chair in Sri Lanka’s overall debt restructuring discussions, making it a critical diplomatic player in the island nation’s path to financial recovery.