The Economy of Peace and Conflict in Sri Lanka

What is it about?

The purpose of this paper is to highlight the economic background to the ceasefire agreement, economic dividends during the time of ceasefire (2002-2005) and the economic impact of the resumption of the conflict in December 2005. The period covered in this paper is 2000-2007. A brief overview of the macro-economy on annual basis during 2000-2007 is followed by an in-depth analysis of key economic variables on quarterly basis during the time of resurgent conflict, i.e. 2006 and 2007.

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Why is it important?

It is very important to understand the economic cost and consequences of the civil war in Sri Lanka in order to make the people aware of the necessity to resolve the conflict by peaceful means and establish durable peace.