Sri Lanka has made a decisive transition into a lower middle-income economy. However, the challenge lies in sustaining this growth transition and positioning itself to step into an upper middle-income economy. In this light, the latest edition of the ‘Talking Economics (TE) Digest’ looks into some of the issues related to managing the middle-income transition in Sri Lanka. This edition of the Digest discusses critical topics that have raised public interest in the past year and relate to the ‘mechanics’ of a new growth trajectory, such as the New Educational Policies and Proposals that were presented in September 2013, the 2014 Budget proposals presented in November 2013, and the WTO Bali Ministerial proposals and outcomes in December 2013. These, as well as issues pertaining to youth development, poverty, and tourism and water management are tackled in this issue of the Talking Economics Digest.