Headline: Lessons for Sri Lanka from Mark Carney’s Davos Rupture 📈

The recent Davos 2026 address by Canadian PM Mark Carney signals a "rupture" in the global rules-based order, warns a new analysis. While Carney urges "middle powers" to unite, the report highlights critical cautionary tales for debt-vulnerable nations like Sri Lanka. • Geopolitical Reality: Carney admitted the "rules-based order" was often a fiction where powerful states exempted themselves. For Sri Lanka, this confirms that global trade and investment rules (like ISDS) often prioritize multinational capital over national sovereignty. • Economic Vulnerability: The 2022 sovereign default is cited as a predictable result of over-integration into a financial system that rewards short-term capital mobility. The report notes debt-to-GDP is projected to fall to 96.8% by 2026, but warns against "deifying" austerity to appease creditors at the cost of social welfare. • Strategic Diversification: To mitigate risks, Sri Lanka must pivot toward: Sustainable Industry: Prioritizing value addition over unconditional liberalization. Agriculture & Food Security: Moving away from import dependence to protect the 8.3% GDP contribution of agriculture. Finance: Shifting from short-term commercial debt to longer-term concessional or bilateral arrangements. • The Verdict: Sri Lanka should avoid uncritical alignment with "middle-power" coalitions that may only reformat the system for their own benefit. Instead, the focus must remain on asserting sovereignty and protecting employment and public services amidst global flux.