Lessons from Singapore’s Economic Strategy for Sri Lanka 📈

• Overall Economic Outlook Sri Lanka’s GDP growth is projected at 4.6% for 2025 before slowing to 3.5% in 2026. Post-2022 crisis recovery remains constrained, with income poverty affecting ~22% of the population and high child malnutrition. Over 80% of government expenditure is locked in public salaries, welfare, and interest payments. • Sector & Trade Performance ICT/BPM: Export revenue grew 8.8% in 2025 to US$ 1.645 Bn. The sector aims for US$ 5 Bn in digital exports and a 12% GDP share by 2030. Traditional Exports: Apparel & textiles, tea, seafood, and rubber face export risks, including a 30% US tariff. The US absorbs 20–25% of total exports and nearly 40% of apparel shipments. • Strategic Roadmap & Blueprint Lessons Trust Infrastructure: Transition from mere geographic advantage (Colombo Port) to a trusted node by operationalizing FTAs with Singapore/Thailand, and concluding pacts with India and China alongside robust anti-corruption frameworks. AI Deployment: Focus on AI-augmented professional capabilities (legal, financial, healthcare data) utilizing the English-literate workforce, rather than building LLMs. Deliberate Jobs Architecture: Target targeted labor investments in AI-resilient sectors like social care, healthcare, advanced niche manufacturing, and the green economy instead of relying purely on growth driven by construction or tourism. Resilience: Build climate and economic shock buffers proactively, learning from the 2022 default and the late 2025 Cyclone Ditwah damage. _Summary based on provisional economic data and strategy briefs._