Overview Sri Lanka

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The institutional structure remains insufficiently decentralized. Plans to revise the constitution to provide more devolution of power have been adversely affected by political infighting. Bitter political conflicts between the legislature, where the UNP-led coalition has majority support, and the president, who leads the rival SLFP, have been counterproductive.

Sri Lanka has seen slower development, with just over 3% growth in 2017 and 2018. Foreign reserves have fluctuated somewhat and foreign remittances by Sri Lankan workers declined slightly. One might note, however, that the informal sector makes up some 60% of the economy and that this sector is often omitted in statistics.

The new government made considerable progress in fostering democracy by allowing media outlets critical of state policies to freely express their views.

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