The Institute of Policy Studies of Sri Lanka (IPS) has been publishing the State of the Economy report since 1992 with a complementary theme selected each year. The report notes that the most promising feature of Sri Lanka’s economic performance in 2005/06 was a steady acceleration in GDP growth to a rate of 7.4 per cent in 2006. Nonetheless, there are increasing signs of a gradual slowdown in economic growth with the growth rate slowing in the first quarter of 2007 to 6.1 per cent and to 6.4 per cent in the second quarter of 2007. These and other issues of emerging policy interest are dealt with in more detail in the report.