Urgent fiscal stimulus needed to protect people’s well-being- IPS

Colombo (News 1st);  Institute of Policy Studies (IPS) has highlighted the need for economies to formulate and implement effective policies to mitigate the negative impacts induced by the Covid-19 crisis.

Writing on the Fiscal Policy Responses to Covid-19, IPS Researcher Chamini Thilanka notes that the pandemic has intensified the need for fiscal policy actions to an unprecedented level and the dire need of the government to intervene and protect the well-being of people.

Noting that Sri Lanka has taken various measures to contain the spread of the virus, Thilanka adds that as of August 2020, the government is estimated to have allocated 0.1 per cent of GDP for containment measures and announced an additional allocation of nearly 0.25 per cent of GDP for cash transfers for vulnerable groups, under its fiscal package.

Sri Lanka’s fiscal package is relatively small compared with other emerging and Middle-Income Countries in the Asian region such as Malaysia (17. 2 per cent of GDP) and Thailand (11.4 percent of GDP). Like other countries, Sri Lanka has also taken a range of measures to contain the spread of COVID-19, of which strengthening its health sector preparedness as well as adopting measures to minimize the economic fallout, have been priorities. READ FULL STATEMENT HERE: