The richest economy in the region, Sri Lanka, slips three places to 71st, but has a stable score. Over the past 10 years, the country experienced tumultuous development and today needs to concentrate on those areas that are most important to trigger the efficiencies that will drive further growth: restructuring the labor market and investing in technological readiness, where it lags significantly behind countries at a similar stage of development. Macroeconomic conditions improved slightly, but continue to be fragile, as high government deficit and debt led to a precautionary agreement with the IMF early this year. Education remains Sri Lanka’s main strength: in addition to high levels of health and primary education (37th), the island reaps the benefits of early investments in higher education and training, today a comparative advantage vis-à-vis its peers and, since 2009, best performing country in the region.