📈 Global Cost-of-Living Crisis & Sri Lanka’s Economic Dilemma

• Global Drivers: Rising global cost-of-living (C-O-L) driven by war and climate change supply constraints. Central bank rate hikes and reduced public spending risk lowering investment and increasing unemployment without easing core price pressures. • Sri Lanka Macro Overview: The economy recorded a 4% growth rate, bringing macro stability after near-bankruptcy. However, the economic burden remains disproportionately placed on lower-income segments. • Policy & IMF Engagement: Management remains guided by the IMF program. Reforms under the AKD/NPP administration remain focused on governance and judiciary, leaving structural economic reform and market price mechanics largely unaddressed.