Amid post-bankruptcy recovery, economist Trinh Nguyen urges Sri Lanka to shift from tourism dependence to economic diversification, energy security, and institutional reform highlighting Vietnam and Thailand as success models.
Singapore — As Sri Lanka navigates a fragile recovery from economic collapse, the country urgently needs bold leadership, deep institutional reform, and immediate economic diversification, said economist Trinh Nguyen during a key trade policy session in Singapore.
Nguyen delivered her remarks at Navigating the Uncertainty, hosted by the National Press Foundation and Hinrich Foundation. Nguyen, Senior Economist for Emerging Asia at Natixis, addressed the urgency of reform in response to a question by a journalist. She warned that unless Sri Lanka strengthens its institutions and reduces its dependence on volatile tourism, it risks falling back into crisis after its IMF grace period expires in 2028.
“Sri Lanka has beautiful beaches, tea, and safaris but tourism is volatile,” Nguyen said. “You need more than that. Countries like Vietnam, which have diversified, weather crises far better.”
She emphasized the importance of energy diversification, warning that reliance on LNG or renewables without a resilient grid leaves economies exposed. “Energy is the lifeblood of your economy,” she said, urging the development of buffers and alternatives.
But more critically, Nguyen stressed the role of leadership and strong institutions. “If you’re lucky, you get a Lee Kuan Yew-type leader,” she said. “But without robust technocracy, even great plans fail.”
She cited Thailand as a model of institutional resilience amid political turmoil, praising its finance and aviation sectors. Nguyen urged policymakers: “Push your government to attract FDI. Invest beyond tourism. Build institutions that survive political cycles.”
The tourism can be the center point. But all other sectors should in parallel grow. Aviation, transport, e governance, technology, agriculture, medical, education, finance, road & bridges, foreign policy, energy, water, culture, fisheries and shipping. Without holistic study tourism will not grow. State is aware and your not.