Sri Lanka Development Forum : The Economy, Regional Disparities, and Global Opportunities

This report is intended to inform the discussions of the Sri Lanka Development Forum. Specifically, section One reviews recent economic performance, the status of macroeconomic management and the strategic directions outlined in Mahinda Chintana. It notes that the recent acceleration in Sri Lanka's growth can be partly attributed to large aid flows for tsunami reconstruction and to rapid growth in domestic demand. While Sri Lanka can sustain higher growth given its level of human development and integration with global markets, this will require addressing structural constraints and managing the downside risks associated with rising inflation and the escalating conflict. Section Two of the report addresses the regional disparities in growth and poverty reduction in Sri Lanka. Noting that differences in education levels and access to infrastructure cannot fully explain the sharp gaps in regional growth, it suggests that the limited scope of market reforms in key sectors, such as agriculture, has played a more significant role. In particular, policy reforms in agriculture have been elusive, partly due to misperceptions that they will hurt the poor. Progress in reducing regional disparities will require politically-sensitive reforms that address these misperceptions, through inter alia public consultations. Finally, section Three takes up the question of how Sri Lanka can accelerate growth further by taking advantage of its high levels of educational attainment and tapping global opportunities in the information technology (IT) and knowledge sectors. The recent increase in foreign direct investment in telecommunications, IT, and business process off-shoring (BPO) in banking suggest that there is potential for such growth. This potential can be enhanced by moving further on the policy agenda that removes the obstacles facing a knowledge economy

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2007-01
Subjects:	ACCESS TO MARKETS, ACCOUNTING, AGRICULTURAL GROWTH, AGRICULTURAL POLICIES, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL SECTOR POLICIES, AGRICULTURE, BANK LENDING, BENCHMARKING, BONDS, BUDGET EXECUTION, CAPITAL MARKETS, CAPITAL PROJECTS, CENTRAL BANK, COMMERCIAL AGRICULTURE, COMPETITIVENESS, CONFLICT, DEBT, DEBT MANAGEMENT, DEBT SERVICE, DEVELOPMENT OBJECTIVES, DIVERSIFICATION, DOMESTIC BORROWING, DOMESTIC SAVINGS, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC IMPACT, ECONOMIC OUTCOMES, ECONOMIC PERFORMANCE, ECONOMIC POLICY, ECONOMIC REFORMS, ECONOMIC STAGNATION, EDUCATIONAL ATTAINMENT, ELASTICITY, ELECTRICITY, EMERGENCY ASSISTANCE, EXCHANGE RATE, EXPORTS, EXTERNAL IMBALANCES, EXTERNAL SHOCKS, FARMERS, FINANCIAL FLOWS, FISCAL MANAGEMENT, FISCAL POLICIES, FISCAL POLICY, FOOD SECURITY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, GDP, GDP DEFLATOR, GINI COEFFICIENT, GLOBAL MARKETS, GROWTH PERFORMANCE, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, HUMAN DEVELOPMENT, INCOME DISTRIBUTION, INCOME INEQUALITY, INCOME LEVELS, INCREASED INVESTMENT, INDUSTRIAL SECTOR, INFLATION, INFLATION RATE, INSURANCE, INTERNAL MIGRATION, INTERNATIONAL COOPERATION, INVESTMENT RATIO, IRRIGATION, KNOWLEDGE ECONOMY, LABOR FORCE, LAND USE, LITERACY RATES, LIVELIHOOD OPPORTUNITIES, LOCAL AUTHORITIES, LONG RUN, M2, MACROECONOMIC FRAMEWORK, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MEDIUM TERM, MILITARY EXPENDITURES, MONETARY POLICIES, MONETARY POLICY, MONEY MULTIPLIER, MONEY SUPPLY, NATIONAL POLICIES, OPEN MARKET OPERATIONS, PENSIONS, PER CAPITA CONSUMPTION, PER CAPITA INCOME, PER CAPITA INCOMES, PER-CAPITA INCOME, PERSISTENT POVERTY, POLICY REFORMS, POLICY STANCE, POLITICAL PARTIES, POPULATION GROWTH, POVERTY HEADCOUNT RATES, POVERTY OUTCOMES, POVERTY RATE, POVERTY REDUCTION, PRICE INCREASES, PRICE STABILITY, PRIVATE SECTOR, PRIVATE SECTOR PARTICIPATION, PRO-POOR, PROGRESS, PUBLIC, PUBLIC DEBT, PUBLIC ENTERPRISES, PUBLIC EXPENDITURES, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC SECTOR, PUBLIC SECTOR REFORM, PUBLIC SECTOR SAVINGS, PUBLIC SECTOR WAGES, RAPID GROWTH, REAL INTEREST RATES, REDUCING POVERTY, REGIONAL DISPARITIES, REMITTANCES, REVENUE COLLECTION, REVENUE PERFORMANCE, ROADS, RURAL, RURAL INCOMES, RURAL POVERTY, SECURITY SITUATION, SERVICE DELIVERY, SHARP REDUCTION, SOCIAL PROTECTION, SUSTAINABLE GROWTH, T-BILLS, TAX, TAX REVENUE, TAX REVENUES, TELECOMMUNICATIONS, TRADE DEFICIT, UNEMPLOYMENT, URBAN POVERTY, VULNERABILITY, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2007/01/7362313/sri-lanka-development-forum-economy-regional-disparities-global-opportunities https://hdl.handle.net/10986/8041
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