Institute of Policy Studies (Sri Lanka)

Institute of Policy Studies of Sri Lanka (IPS) is the apex economic policy research institute in Sri Lanka. Established in 1988, it is an autonomous institution that aims to contribute to socio-economic development through high quality, policy-oriented economic research. The board of governors of the IPS includes notable individuals from the government, corporate sector, and academic institutions.
The organisation is known for conducting extensive policy-relevant research to provide robust evidence for policymaking and improve the lives of all Sri Lankans.
History and Background
The IPS was conceived in 1985 as an autonomous institution designed to promote policy-oriented economic research and to strengthen the capacity for medium-term policy analysis in Sri Lanka with assistance from the , Hague. The Institute was finally established by an Act of Parliament in December 1988 and was formally set up as a legal entity by gazette notification in April 1990.
From its inception, the IPS was supported through a collaborative project between the Royal Netherlands Government and the Government of Sri Lanka under four phases of operations to allow the Institute to gradually diversify its income and resource base. In the interim, the IPS has been successful in establishing its own Endowment Fund and setting in motion the transition to full financial independence with the formal ending of the fourth phase of operations in June 2006. The IPS moved to its own head office in September 2010.
Since its formal establishment in 1990, the IPS has come to be recognized as a centre of excellence in economic policy research. An important feature of our research is its coverage of many of the major areas of relevance to current socio-economic policy issues in Sri Lanka and the Asian region. The complementary expertise of our researchers is the key source of strong empirically-based evidence to support economic policymaking, disseminated widely through reports, research papers, journal articles and public presentations.<ref name"Island" /><ref name"TI" /><ref name="DFT" />
The IPS functions under the key ministries involved in economic policy making and implementation in Sri Lanka, working closely with the government, private sector, development partners, civil society and academia.
Areas of Research
The substantiate focus of IPS' research is to provide an integrated analysis of the medium to longer term development challenges facing Sri Lanka in order to meet the fundamental policy objectives of sustainable growth, equity and poverty alleviation.<ref name"Island" /><ref name"TI" /><ref name="DFT" /> The research programme spans across 1) macroeconomic policy; 2) international economic policy; 3) labour, employment, and human resources development policy; 4) industry, competitiveness and regulatory policy; 5) poverty and social welfare policy; 6) agricultural economic policy; 7) environmental economic policy; and 8) health economic policy. These policy issues are examined under six thematic areas of research:
Macroeconomics, trade and competitiveness
In view of Sri Lanka’s current demographic transition, higher growth will have to come from improved labour productivity and efficiency, encompassing a gamut of regulatory reforms to raise competitiveness and institutional capacity in the economy. This calls for policies that will allow for a reallocation of factors of production; diversification, upgrading, and deepening of the production and export baskets; and use of new production methods and processes and different inputs.
Migration and urbanisation
IPS research on Migration and Urbanisation examines the twin challenges of identifying and promoting foreign employment that is both beneficial to the workers as well as the country; and planning for sustainable internal migration and urbanisation.
Health, education and labour
IPS research on Human Resources for Sustained Development addresses the constraints to strengthening Sri Lanka’s human resources to meet the changing demands of a globalized economy. Improving access to high quality tertiary level education, meeting gaps in the quality and access to general education, and addressing health concerns such as nutrition and prevalence of NCDs are important to ensure success in education and greater productivity in work life.
Agriculture and agribusiness development
IPS research on Private Sector Development examines the constraints to a conducive business environment for greater private sector investment, including FDI. This includes addressing limitations on the institutions and regulatory processes which impact on private sector activity, innovation and entrepreneurship in an economy.
Poverty and social welfare
IPS research on Poverty and Vulnerability examines the causes and determinants of socio-economic disparities across sectors and regions of Sri Lanka. A rapid population ageing, high levels of informality in the workforce, higher unemployment among youth and the educated, amongst others, are factors that impinge on social protection and skills and livelihood development through access to quality financial services for equitable growth outcomes. In addressing these challenges, recommended policies and programmes also need to be cognizant of SDG objectives and targets for the country.
Environment, natural resources and climate change
IPS research on Environment, Natural Resources and Agriculture focuses on the role of coordinated policies and strategies aimed at safeguarding the continuity of Sri Lanka’s natural capital stock. These include innovation and adoption of right technical solutions, getting the structure of incentives right, and setting up effective institutions. The rising scarcity of land, issues of agriculture productivity, and food security, coupled with the risks and uncertainty associated with climate change impacts calls for an integrated approach that combines decisions taken at several areas of public policy.
Notable Milestones
1985
IPS Project located in the Ministry of Finance and Planning with a Resident Coordinator from the ISS, The Hague, with funding under Phase I of Sri Lanka-Netherlands Technical Cooperation project.
1988
IPS established under Act of Parliament No. 53 of 1988.
1990
IPS comes into formal operation under the Ministry of Finance and Planning by Gazette Notification.
1992
Initiation of the IPS' State of the Economy Report.
1994
Appointment of Executive Director, Dr. Saman Kelegama.
1996
MOUs with foreign universities for exchange programmes initiated.
1997
Appointed as the focal point of the IOR-ARC academic group in Sri Lanka.
1998
Appointed as the focal point of the SAARC Research Network.
2000
Launch of the South Asia Economic Journal, an international journal jointly with RIS India.
2004
IPS appointed to the Chair for the Indian Ocean Rim Academic Group.
2005
Organized the first major international conference with more than 150 foreign participants, which was the Poverty and Economic Policy (PEP) General Meeting.
2008
Initiating the first South Asia Economic Summit.
2009
Appointed as the academic focal point for the Asian Cooperation Dialogue.
2010
Winner of the Think Tank Initiative (TTI) grant: Phase I (four-year core funding under IDRC).
2012
Launch of the IPS University Forum.
2013
Host of the 6th South Asia Economic Summit.
2014
Winner of the TTI grant: Phase II.
2015
IPS marks 25 years in operation.
2017
Dr. Dushni Weerakoon appointed as the Executive Director following Dr. Saman Kelegama’s demise.

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