Sri Lanka’s failure after gaining independence in 1948 to live up to its initial promise of economic development could be attributed to a self created foreign-exchange crisis that persisted till 1977 because of the urgent electoral politics that shackled the country to welfare oriented, inward looking policies. Later the eruption of conflict between the two main communities as of 1983, again caused by exclusive polices adopted after independence by the rulers dominated by the majority community.
As the result, today country’s foreign reserves have shrunk to an all-time low over the past 70 years. This is due to 30 years of brutal civil-war, and the ensuing unrest. Due to the country’s current unstable economy, foreign investors have lost hope. And the bitter reality is that the country’s foreign reserves have deteriorated over the past year and a half due to irrational political conditions.
Under this scenario, country’s coffers could be replenished by a proper national economic policy to redeem the country. Today people expect the new Finance Minister to come up with a proper national economic policy to solve the economic problems faces by communities in the whole country!
Northern Breeze 