The Political Economy of Postwar Economic Development in Sri Lanka


  • Prasanna-Perera Welgamage Lalith Prasanna-Perera Senior Lecturer in Economics & Statistics, Dept. of Economics and Statistics, University of Peradeniya, Sri Lanka



Ealam war, economic growth, FDI, poverty and postwar economy, Sri Lanka.


Thirty years of civil war in Sri Lanka has affected economic, political, social, cultural and psychological aspects of the society significantly. This paper presents an overview of postwar development strategies in Sri Lanka and compares it with the prewar economy from a political economic perspective. The paper specifically examines the progress of the overall postwar development in the war affected Northern Province of Sri Lanka. Using mixed methodologies data was gathered on critical aspects related to political economy. According to the current study, no clear progress has been made in the areas of economic growth, FDI growth, household income, and poverty and income inequality in the postwar economy of Sri Lanka when compared with the prewar economy. Government fiscal policy targets the postwar reconstruction works while monetary policy enjoys the amalgamation of North and East provinces to country’s aggregate supply apart from introducing very few loan schemes. Security phobia of the government of Sri Lanka limits local, national, regional and international none-government organizations especially in the North and East. There is a considerable amount of progress made in the area of infrastructure development and resettlement of displaced persons. However, primary data from the study indicates these strategies lack conflict sensitivity and public trust. This study emphasizes that postwar economic development strategies should address the critical determinants of sustainable recovery, peace and development aiming at protecting human rights, ensuring rule of law, establishing efficient public service system and finally offering constitutional reforms in Sri Lanka.

Author Biography

Prasanna-Perera Welgamage Lalith Prasanna-Perera, Senior Lecturer in Economics & Statistics, Dept. of Economics and Statistics, University of Peradeniya, Sri Lanka

Dr. Prasanna Perera holds a BA (Honours - First Class) in Economics from University of Peradeniya, a MA in Economics from Thammasat University (Thailand) and a PhD in Economics from University of London and University of Peradeniya. Prasanna has nearly 20 years of teaching experience in the University of Peradeniya and currently serves as a Senior Lecturer (Gr. I). His research areas include International Trade with special focus on Regionalism, International Finance, Monetary Economics, Political Economy and Macroeconomics. Prasanna initiated the idea of Sport Economy in Sri Lanka and he appears regularly on electronic and other media. He has published a number of articles and books in Economics. He serves as a Visiting Lecturer in Economics at various universities in Sri Lanka and undertakes consultancies for both Government and Non-Government Organizations.  


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