The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper on Sri Lanka reviews several issues that highlight both Sri Lanka's accomplishments and their policy constraints amidst a protracted period of civil conflict and political instability. High intermediation costs have held back development of the financial sector and could also frustrate Sri Lanka's quest for higher growth. The main constraints to achieving higher growth include the civil conflict, political instability, high fiscal deficits and inflation, and underdeveloped financial markets.