“South Asia experiencing economic resilience with 6.5% growth forecast”

In spite of the recent challenges, South Asia is experiencing notable economic resilience, with the World Bank revising the region’s growth forecast up to 6.4% from 6% Vice President of the South Asian Federation of Accountants and President of the Institute of Chartered Accountants of Sri Lanka Heshana Kuruppu told an event hosted by CA Sri Lanka which took place in Colombo recently.

“Despite the challenges that our region has faced recently, the World Bank growth forecast is 6.4 percent, up from 6 percent earlier. This revision no doubt underscores the resilience of our region driven primarily by India’s strong demand and faster than expected recoveries in countries like Sri Lanka and Pakistan. However, to fully realize this potential, there is still a lot more work that needs to happen. As India strives to become the world’s third largest economy by 2030, our region must focus on improving trade, adopting open policies, enhancing ease of doing business and promoting greater participation of women in the workforce,” Kuruppu said.

This upward revision highlights the region’s robust recovery, largely driven by India’s strong domestic demand and accelerated recoveries in countries like Sri Lanka and Pakistan. South Asia’s recognition as the fastest-growing emerging economic region showcases its substantial potential, positioning it as a focal point of global economic interest.

To fully harness this potential, South Asia must adopt reforms aimed at fostering open trade policies, improving ease of business, and increasing women’s workforce participation. These steps are vital for India’s aspiration to become the world’s third-largest economy by 2030. Additionally, fostering better governance and boosting foreign direct investment (FDI) will be instrumental in achieving inclusive and sustainable growth across the region. Corporate governance and transparency are essential to maintaining investor confidence and attracting capital. Embracing new technologies, enhancing trade, and implementing transparent reporting practices will help South Asia realize shared economic prosperity. With more leaders recognizing the region’s growth prospects, South Asia could see increased capital flow, especially as transparency in financial and non-financial reporting strengthens investor trust.

Sustainability is another priority, with new standards focusing on responsible business practices. Yet, small and medium enterprises (SMEs), critical drivers of South Asia’s economy, often struggle to adopt these standards due to resource constraints.