Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, underscored the importance of targeted regional integration in South Asia, focusing on the areas of energy security and digitalization. Describing these areas as “low-hanging fruits,” he suggested they could provide immediate benefits. Speaking at a high-level roundtable in Bangkok, Dr. Weerasinghe drew comparisons with ASEAN’s advancements, while highlighting the challenges posed by protected economies in South Asia.
During the discussion on regional integration, Dr. Weerasinghe highlighted ASEAN’s ongoing efforts, noting that intra-regional trade currently stands at 22%, with expectations to rise to 50% by 2050. “We talk about regional integration, and it’s happening in ASEAN,” he remarked. He advocated for a practical approach focused on areas that offer immediate benefits, such as payment and settlement connections and data sharing. “These easier low-hanging fruits will be much more effective in the short term while moving towards broader integration,” he stated.
Addressing the situation in South Asia, Dr. Weerasinghe described the region as “even much less integrated,” with intra-regional trade less than half of ASEAN’s. He attributed this to the “very close protected economies” within the bloc, despite India’s strong annual growth of 5-7%. “The reason for this is the close protectionism within the South Asian block,” he explained.
Dr. Weerasinghe emphasized the potential for energy security, pointing to untapped renewable resources in the region. He mentioned Nepal and Bhutan’s underutilized capacities, hindered by “internal regulations, restrictions, and fear of opening up to foreign investment.” In Sri Lanka, he noted, “We have a significant wind and solar power potential. Why can’t we open up for investment and establish good connectivity with India and the region? This regional integration is easily beneficial and can uplift the region.”
He also praised India’s progress in digitalization as a model for integration. “India has made great strides recently. This is another easy area for integration in terms of digital connectivity and permanent settlements with India, using advanced digital technologies,” he said. He proposed extending connections to Singapore and Malaysia, suggesting that such targeted efforts avoid the complexities of broader political economy issues. “These areas provide immediate benefits, garner public support, and are easier to implement,” he concluded.
The remarks were made during a roundtable titled “Bringing Everything Together – Policy Challenges for Asia Going Forward,” as part of the Asia in 2050 conference in Bangkok, held from March 4-6, 2026. The event, organized ahead of the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group, gathered prominent figures including IMF Managing Director Kristalina Georgieva, Malaysia’s Finance Minister Amir Hamzah Azizan, and Thailand’s Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas. Moderated by Bloomberg’s Haslinda Amin, the discussion aimed to explore Asia’s long-term growth prospects and policy challenges, promoting collaboration among policymakers and experts.
