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Sri Lanka’s New President Commits to Expanding Regional Trade Relationships and Pursuing Trade ReformsFebruary 2025

As Sri Lanka concludes debt restructuring agreements, and the focus shifts to enhancing growth, the new President’s maiden budget speech has hinted at the policy pathway that can be expected. And it is encouraging. President and Finance Minister Anura Kumara Dissanayake Budget 2025 in Parliament last week (17th February), and the proposals relating to trade and competitiveness reforms demonstrated remarkable consistency with budgets of recent administrations, with commitments to trade reforms and expanding trade relations. It has helped.

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South Asia as the Regional Energy Hub: Moving Towards Facilitating Trans-Regional Grid Interconnection and Energy TradeFebruary 2025

South Asia is emerging as a key player in the global energy sector due to its growing energy demand, strategic location, and potential for renewable energy production. The region has made significant progress in cross-border electricity trade (CBET), with countries like India, Nepal, Bhutan, and Bangladesh actively exchanging power. India plays a central role in facilitating this trade by integrating its power grid with neighboring nations, enabling efficient electricity distribution.


A major development in 2024 was the first power transfer from Nepal to Bangladesh via India, marking a step towards a multilateral regional energy market. Initiatives like "One Sun, One World, One Grid" (OSOWOG) aim to enhance trans-regional energy connectivity, promoting renewable energy integration and reducing dependency on fossil fuels. The trans-regional grid interconnections needed for it can help expand energy cooperation beyond South Asia, fostering large-scale electricity trade. To achieve thi, regulatory coordination, investment in infrastructure, and financial incentives are necessary to ensure seamless energy exchange. Establishing regional regulatory forums, standardizing grid codes, and encouraging foreign investments will be crucial for success.


With electricity demand expected to reach 810 GW by 2040, South Asia is well-positioned to become a global energy hub. Strengthening energy cooperation and integrating renewable sources will lower electricity costs, improve energy security, and support economic growth. By leveraging regional collaboration and technological advancements, South Asia can shape the future of clean energy trade and become a leader in global energy markets.  Read More

South Asia'sConundrumJanuary 2025

South Asia has long been a region of untapped potential, lagging behind East Asia in economic progress, despite some remarkable successes. “China plus one” presents another opportunity for the region to capitalize on its demographic dividend. Focusing on Bangladesh, India, Pakistan, and Sri Lanka, this article highlights major hurdles to their sustained progress, including protectionist trade policies, inadequate human capital, and a small labor force relative to population. For Sri Lanka and Pakistan, there are the additional challenges of coping with ongoing economic crises. The analysis suggests options to regaining/sustaining macroeconomic stability, while factoring in the fiscal dimension of climate change; acting urgently to deepen global and regional trade, to seize the moment; addressing the near crisis in human capital in many countries; accelerating digital solutions to improve governance and service delivery; and using regional cooperation to help build climate resilience. The role of business elites in influencing economic policies is also discussed.

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Bangladesh’s resilience amid turmoilJanuary 2025

Policymakers, basking under the success of the twin pillars of garments and remittances, have delayed serious economic reforms for the last 15 years.


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India's Export Controls are More Frequent and Stricter: Is There a Better Alternative? - Prakhar ChaudharyOctober 2024

India's frequent and strict non-basmati rice export controls significantly impact the global market, especially South Asian economies. While aiming to ensure domestic food security and control inflation, these policies cause price uncertainties in rice-importing smaller South Asian neighbors, running counter to India's "Neighborhood First" aspirations. This approach contrasts with the targeted strategies from major exporters like Thailand and Vietnam. While remaining compliant with WTO rules, India has faced concerns from other countries. It continues to supply rice to dependent nations through government-to-government agreements, making humanitarian exemptions to the export ban. Developing more predictable policies could benefit both India and the global rice market.


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