Sri Lanka's Recovery: Leveraging Global Trust for Resilience 📈

• Strategic Focus: Foreign assistance is being positioned not just as emergency relief, but as a tool for economic stabilization and infrastructure reconstruction. The goal is to "Build Back Better" by integrating climate-resilient standards and hazard mapping into the national reset. • Fiscal Impact: Concessional financing (grants and soft loans) is critical to bridge the fiscal gap without triggering inflation or high interest rates. This external support preserves macroeconomic discipline while protecting the domestic tax base. • Sector Revitalization: • MSMEs: Targeted credit lines and guarantee schemes are essential to revive small businesses, agriculture, and tourism, preventing permanent closures and stabilizing employment. • Infrastructure: Multilateral partnerships bring global technical expertise to rebuild roads, water systems, and schools, ensuring regional productivity. • ICT/BPM & Digital Governance: Implementation of digital grant management and transparent procurement systems to enhance accountability and investor confidence. • Leadership as an Asset: President Anura Kumara Dissanayake’s international standing as a reform-oriented leader is viewed as "economic capital." This credibility is expected to: • Improve financing terms (lower rates, longer maturities). • Accelerate aid disbursement speeds. • Crowd in private investment and diaspora engagement by signaling policy stability. • Economic Outlook: Based on current recovery data, the focus shifts from aid dependency to using global trust as leverage for long-term, inclusive growth and sustainable revenue mobilization.