Fashion
Sri Lanka can lift revenue by 2% of GDP by 2029: World Bank
The adjustment was also sharper and faster by international standards – when compared with more than 330 similar efforts in 123 countries worldwide since 1980. According to the review, Sri Lanka is now well-positioned to focus on making public finances work better for all citizens.
Sri Lanka can boost revenue by up to 2 per cent of GDP by 2029 without harming growth or equity, according to the World Bank.
Following significant fiscal stabilisation, the country is urged to focus on fairer taxation—especially direct taxes—and smarter spending.
Improved tax administration, efficient budgeting, and targeted reforms can enhance service delivery and support inclusive growth.
While fiscal measures helped restore stability, they have also placed pressure on households through higher indirect taxes and reduced real public-sector wages, and slowed growth due to lower public investment. The next phase of fiscal calibration should prioritise raising revenues in ways that support growth and fairness, and improve the quality of government spending.
The review recommends raising revenue more fairly and efficiently by shifting towards direct taxes—such as implementing a minimum corporate income tax—and by digitising tax administration to make compliance easier, more transparent, and efficient. On the spending side, it emphasises that neither increasing nor decreasing overall spending is feasible; instead, the focus should be on using existing resources more effectively. By spending smarter—improving efficiency, reducing waste, and enhancing service delivery—the government can achieve better outcomes without altering the total budget.
“Now that Sri Lanka has largely stabilised its economy, the challenge is to get better results from every rupee collected and spent,” said David Sislen, World Bank division director for Maldives, Nepal and Sri Lanka. “This means modernising tax administration, focusing on direct taxes, and making sure public spending is both efficient and fair—especially for the most vulnerable.”
Looking ahead, Sri Lanka can design the next phase of its public finance reforms to build long-term fiscal resilience. Strengthening links between planning and budgeting, improving accountability, and focusing on measurable performance outcomes will help deliver better services, support inclusive growth, and protect the most vulnerable.
Fibre2Fashion News Desk (RR)
While rates initially jumped in early January, weak underlying demand and the potential return of vessels to the Suez Canal are creating a volatile environment for shippers, it noted.
Carriers pushed through general rate increases (GRIs) in early January this year, briefly lifting China-to-US West Coast rates above $3,000 per forty-foot equivalent unit (FEU). However, these hikes were largely unsustainable due to weak volumes, with rates quickly correcting to the $1,800-$2,200 range by mid-month, the logistics and supply chain market research firm said in an insights brief.
Asia’s ocean freight market is navigating short-term seasonal surges and long-term structural overcapacity, Ti said.
Asia’s air freight market is seeing a significant ‘post-peak’ correction following a record-breaking end to 2025.
Warehousing capacity in the Asia-Pacific is under severe strain in late January as manufacturing slows and labour shortages emerge ahead of the Lunar New Year.
Seasonal demand ahead of the Lunar New Year (starting mid-February 2026) has pushed North Europe rates to roughly $2,700 per FEU as of mid-January. This is a significant recovery from the October 2025 lows of $1,300 per FEU.
Despite a peak ahead of the holiday, Intra-Asia rates have begun to ‘cool’ in mid-January, settling at an average of $661 per 40-feet container as new services and capacity entered the market.
The Asian air freight market is witnessing a significant ‘post-peak’ correction following a record-breaking end to 2025. While rates have dropped sharply from their December highs, demand remains resilient in key high-tech sectors, and a ‘mini-peak’ is expected in late January ahead of the Lunar New Year.
Spot rates from major hubs like Hong Kong and Shanghai fell significantly in early January as year-end peak season demand evaporated.
Despite the rate correction, global air cargo tonnages jumped by 26 per cent in the first full week of January 2026 compared to the end-of-year slump, with the Asia-Pacific region seeing an 8 per cent year-on-year (YoY) increase in chargeable weight.
Volumes from Southeast Asia to the United States rose by 10 per cent YoY in early January, driven by importers continuing to diversify sourcing away from China.
Warehousing capacity in the Asia-Pacific is under severe strain in late January as manufacturing slows and labour shortages emerge ahead of the Lunar New Year.
India closed 2025 with 36.9 million sq ft of warehouse leasing (16-per cent YoY growth), a trend continuing into early 2026 with high demand in Delhi National Capital Region and Chennai.
After a period of oversupply, development pipelines are expected to drop by a third by 2027, making 2026 a critical ‘inflection point’ for occupiers to secure quality space before terms tighten again.
Fibre2Fashion (DS)
The goal, however, is challenging due to external pressures, including stricter technical barriers, reciprocal tariffs on goods exported to the United States, and the European Union’s Carbon Border Adjustment Mechanism (CBAM) for selected industrial products.
Therefore, major export industries in the country have started restructuring and adjusting strategies early in the year to seize market opportunities.
Following a record export value of $475 billion achieved in 2025—up by 17 per cent YoY—Vietnam aims at adding nearly $38 billion to the figure in 2026.
Major export industries in the country have begun restructuring and adjusting strategies early in the year to seize market opportunities.
The textile and garment sector, which earned $46 billion in 2025, has set a target of $50 billion in exports in 2026.
The textile and garment sector, which earned $46 billion in 2025, has set a target of $50 billion in exports in 2026.
The sector is focusing on strengthening domestic supply chains, raising localisation rates and making more effective use of free trade agreements (FTAs), Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), was cited as saying by a domestic media outlet.
Exports may grow by 15-16 per cent this year, driven by market expansion and a shift towards higher-value products, according to MB Securities’ Vietnam Outlook 2026 report.
Fibre2Fashion (DS)
The data showed that the decline was driven mainly by weaker domestic exports, with goods produced in the Netherlands down 8 per cent YoY. In contrast, re-exports to the US rose 3.9 per cent during the period. Exports to the US have fallen every month on a YoY basis since July, CBS said in a press release.
Trade flows were influenced by uncertainty around US import tariffs. In the first half of 2025, trade between the two countries continued to grow, possibly as companies advanced shipments ahead of announced tariff measures.
Goods exports from the Netherlands to the United States fell 4.7 per cent YoY to €27.5 billion (~$33 billion) in the first ten months of 2025, driven by an 8 per cent drop in domestic exports, according to CBS.
Re-exports rose 3.9 per cent, while tariff uncertainty weighed on trade.
Imports from the US increased 1.9 per cent to €48.1 billion (~$57.7 billion).
Meanwhile, imports from the United States rose 1.9 per cent YoY to €48.1 billion (~$57.7 billion) in the first ten months of 2025.
Fibre2Fashion News Desk (SG)
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