We Should Not Compare Bangladesh to Sri Lanka

It is inappropriate to compare Bangladesh with Sri Lanka. Bangladesh’s economy has reached numerous significant milestones and continues to advance despite various challenges. The government has undertaken several major infrastructure projects that promise to transform the country’s future.

For instance, the Padma Multipurpose Bridge is nearing completion and is set to open to traffic in June. This bridge will revolutionise connectivity in the southern region of Bangladesh. Other landmark projects such as the Bangabandhu Satellite-1, which provides comprehensive telecommunications services including direct home TV, radio, telemedicine, education, and internet access, the Rooppur Nuclear Power Plant, the Dhaka Metro Rail, and the Matarbari Power Plant, are all making substantial contributions to the nation’s economic growth.

Furthermore, construction is underway on key developments including the deep seaport, the Rampal coal-fired power project, the Bangabandhu tunnel, and 100 economic zones. An elevated expressway, over three dozen high-tech parks, and IT villages are also being built. The government has adopted the Eighth Five Year Plan, with a focus on equipping rural villages with modern civic amenities — turning the idea of “my village is my city” into reality. Today, Bangladesh is a country that can proudly hold its head high.

In social development, 320,062 families have been provided housing under the government’s shelter scheme. Marking the centenary of Sheikh Mujibur Rahman’s birth, 6,179 families received homes as part of this landmark year. There are approximately 14,500 community clinics delivering healthcare directly to people’s doorsteps. The government supports over 30 million students through scholarships and stipends, provides allowances to 600,000 individuals, distributes rice to between 1 and 5 million families, and offers subsidies to farmers in the agriculture sector. During the COVID-19 pandemic, the government announced stimulus packages worth BDT 121,000 crore, which have played a critical role in poverty alleviation.

Bangladesh is now the world’s third-largest rice producer and ranks second globally in the growth rate of fish, meat, eggs, and vegetables from self-sufficient inland sources. The benefits of ‘Digital Bangladesh’ are extending rapidly from urban centres to rural communities. In 2018, the United Nations recognised Bangladesh’s transition from a Least Developed Country (LDC) to a developing nation. On the golden jubilee of independence, the UN gave its final recommendation for this elevation. According to the World Economic Forum, Bangladesh is projected to become the 24th largest economy worldwide by 2030. The country’s second perspective plan envisions eradicating extreme poverty by 2031.

The qualifications for a developing country are typically measured by per capita income, human resources, and economic resilience. In all these respects, Bangladesh has made remarkable progress. Even amid the COVID-19 crisis, the country’s per capita income has grown steadily, impressing the global community. Significant strides have also been made in women’s education, empowerment, healthcare, and reductions in maternal and child mortality.

Women in Bangladesh now play an active role across all sectors — social, political, and economic. Rural women, equipped with technological skills, are advancing alongside men. This progress has enhanced Bangladesh’s reputation internationally. The nation is moving steadily towards realising the vision of a ‘Golden Bengal’ as dreamed by Bangabandhu Sheikh Mujibur Rahman.

The Prime Minister has set important goals, including the full achievement of the Digital Bangladesh vision by 2021. While much progress has been made, there remains work to be done.

Every citizen must contribute to building a better Bangladesh — one free from hunger and poverty, in line with Sustainable Development Goals 1 and 2. We must uphold the spirit of the Liberation War and secularism envisioned by Bangabandhu. Though Bangladesh has limited resources and a dense population, it stands today as a shining example of development for the world.

[ We Should Not Compare Bangladesh to Sri Lanka ]

 

Most of the world’s economies experienced negative growth over the past year due to the Covid-19 pandemic. This means that the gross domestic product (GDP) of many countries contracted compared to the previous year. Even fast-growing neighbours such as India saw their GDP shrink by approximately 6 percent. Bangladesh, however, was a notable exception. Although the economy faced challenges, it did not contract during this period. Despite the global downturn in 2019-20, Bangladesh’s economy remained resilient and continued to grow.

The World Bank projects even stronger growth for Bangladesh in the coming financial year, forecasting a 7.9 percent increase in GDP for 2022-23. Exports and domestic consumption are expected to maintain their momentum. The country’s continued economic recovery and poverty reduction will largely depend on the effectiveness of support extended to families and businesses affected by the economic slowdown.

It must be acknowledged that Bangladesh faces numerous developmental challenges. However, the government is actively addressing these issues through sound policies and strategic planning, and will continue to do so. Notably, Bangladesh’s current tariff- and quota-free access to the European Union market will remain only until 2029, making the preparation for the next five years critical.

Economists advise that Bangladesh should implement robust transitional strategies aligned with the Sustainable Development Goals (SDGs), the Eighth Five Year Plan, and the Perspective Plan for Sustainable Development. Key priorities should include enhancing the purchasing power of the domestic market, diversifying exports, increasing employment opportunities, developing infrastructure, combating corruption, improving the quality of education, and expanding healthcare services.

Many commentators caution Bangladesh against the crisis currently engulfing Sri Lanka. However, it is important to recognise that the economic structures of the two countries differ significantly. Unlike Sri Lanka, Bangladesh faces no food production shortages and is largely self-sufficient in its staple foods. The country’s export earnings and remittances continue to rise steadily. Bangladesh holds foreign exchange reserves of approximately 44.4 billion dollars, compared to less than 2 billion dollars in Sri Lanka. Additionally, Bangladesh’s foreign debt per capita stands at 292 dollars, a fraction of Sri Lanka’s 1,650 dollars.

Bangladesh’s economy holds immense potential and is advancing rapidly. Although Covid-19 has temporarily slowed progress, the outlook remains positive. There are valuable lessons to learn from Sri Lanka’s experience, particularly the dangers of overextending beyond one’s capacity. It is essential to avoid undertaking development projects that exceed national resources and capabilities. Furthermore, international support—crucial to Bangladesh’s development—can be withdrawn unexpectedly.

Therefore, the government must continue to prioritise sectors that genuinely contribute to development, income generation, and poverty alleviation. Policymakers must ensure the country remains resilient against future crises, including potential shocks similar to the Covid-19 pandemic. Only with such vigilance can Bangladesh achieve developed country status and ensure prosperity for all its citizens.

Given the current economic circumstances, it is inaccurate and unfair to compare Bangladesh with Sri Lanka. The social and economic contexts of the two nations are vastly different. Sri Lanka, which just a decade ago was poised to become an upper-middle-income country, is now facing bankruptcy. The country is suffering severe power shortages due to its inability to import fuel, transport has become increasingly difficult, educational examinations are being cancelled due to paperwork shortages, and commodity prices are soaring. Public protests threaten to topple the government.

Sri Lanka has even sought financial assistance from Bangladesh, but the Bangladesh Bank has declined to provide loans, considering the overall situation. Beyond financial troubles, Sri Lanka’s crisis is also attributed to excessive dependence on China and an entrenched family dictatorship. In contrast, Bangladesh enjoys a stable democracy and a steadily developing economy with a strong economic base. The government is monitoring the situation closely and learning from it.

 

 

 

The situation in Sri Lanka has become profoundly troubling. Inflation, rampant unemployment, and severe shortages of nearly all essential goods have precipitated widespread hardship. Over the past decade, Sri Lanka embarked on several large-scale infrastructure projects that are now widely regarded as excessive and unsustainable.

Currently, Sri Lanka is grappling with the worst economic crisis in its 74-year history. Despite being the most advanced economy in South Asia, with a per capita GDP exceeding USD 4,000, and boasting one of the region’s most people-centred education systems—where 95% of the population is educated—and a top-ranked healthcare system, the country’s economic stability has dramatically deteriorated. Sri Lanka was once a leading tourist destination in South Asia, but in recent years, its economy has fallen into deep crisis.

The acute shortage of imported goods has severely disrupted daily life. For months, Sri Lanka has been enduring a food crisis, exacerbated by foreign exchange reserves hitting historic lows. This has rendered the importation of food and other essentials impossible. As shortages deepen, queues for basic items lengthen daily, fuelling widespread public anger and growing anti-government protests.

The Sri Lankan rupee’s exchange rate against the US dollar has plummeted from 190 rupees per dollar to over 360 rupees within just two months. The country faces looming debt repayments amounting to USD 7.3 billion in interest within the next year, pushing it perilously close to financial collapse. Analysts have long warned that Sri Lanka’s extensive borrowing to finance various projects since 2009 has left it vulnerable to economic ruin.

Sri Lanka’s geopolitical dynamics have also shifted. Due to India’s involvement in the civil war, Sri Lanka distanced itself from India and increasingly aligned with China. Under China’s Belt and Road Initiative (BRI), significant projects were undertaken, including the Hambantota deep-sea port, a Chinese city near Colombo’s seaport, and the Rajapaksa airport constructed in a forested region. However, demand for Hambantota port has remained disappointingly low, forcing Sri Lanka to lease the port to China for 99 years after failing to generate sufficient revenue. Other projects have faced similar challenges.

There is understandable concern that Bangladesh might repeat Sri Lanka’s mistakes by committing to costly projects that could lead to debt distress. Yet, when the World Bank withdrew its funding for the Padma Bridge in June 2012, Bangladesh’s Prime Minister boldly decided to complete the project using national funds. That decision changed Bangladesh’s international reputation forever.

The Padma Bridge is scheduled to open to traffic on 30 June, a symbol of national pride and resilience. While many large projects are underway, there is a clear consensus that Bangladesh must learn from Sri Lanka’s economic collapse and avoid falling into a debt trap.

Our firm belief remains that Bangladesh will remain Bangladesh — strong and grounded. The soil beneath our feet is solid, and our future, promising.