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Sri Lanka: Economy, Politics and Government

Source: Business Intelligence Report : Sri Lanka, 2001 , pp. 1-62(62)

Publisher: World of Information

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Abstract:

In 2001, a ray of hope had appeared that Sri Lanka's protracted 18-year civil war would be scaled down, leading to a negotiated settlement. President Chandrika Kumaratunga's government and the minority Tamil separatist group demanding secession, had finally agreed to allow the Norwegian government to participate as a facilitator in bilateral talks. How the economy fares depends on the progress of the peace process.The government's fiscal objectives are to reduce the budget deficit to 8.5 per cent of GDP and a 25 per cent increase in revenue. These are unlikely to be achieved unless peace negotiations are on the road and a lasting solution is found to the war. As it is, continuing high budget deficits will prove to be Sri Lanka's main problem.

World of Information Business Intelligence Reports allow access to concise, clear coverage of current political and economic developments in over 100 countries. Alongside contributions from journalists and regional experts from around the world, they contain a wide variety of sectoral analysis and background information. Each Report contains an introductory overview commissioned from one of World of Information's network of contributors, an extensive list of key facts and features of the country, including macroeconomic indicators and details regarding national population, labour market and public services. The economy section focuses on monetary, fiscal and trade conditions before analysing sectoral, infrastructure and regulatory developments. Natural resources including agriculture and minerals, industry and service sectors are covered. A five-year table of key indicators invaluable for research into economic trends accompanies the report.

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