Muttukrishna Sarvananthan

In his article “Second Wave of Neoliberalism: Financialisation and Crisis in Post-War Sri Lanka” (EPW, Web Exclusives, 31 August 2013), Ahilan Kadirgamar terms the economic policies and programmes of the current regime in Sri Lanka “neo-liberal”. He also indirectly suggests that the current “second...

The Interim Self-Governing Authority (ISGA) proposals are certainly worthy of consideration for a lasting and durable solution to the ethnic conflict in Sri Lanka. However, the devolution of powers sought under the proposals can only be granted to elected representatives of the people of the North and the East, whether in the interim or in the long-term. Therefore, it is time the LTTE transforms itself into a genuine democratic political organisation and subjects itself to public scrutiny by way of referendum or election.

The government of Sri Lanka imposed an economic embargo on the N and E province in 1999 covering a range of consumer goods including fuel, food and medicine. The embargo created an informal market for these goods. More importantly it allowed the Liberation Tigers of Tamil Eelam to play a dominant role in the management of the economy in the territory, leading to a dual economic system, a command economy in the north and east and a private sector-led liberal market economic model in the rest of the country. It is now a year since the economic embargo has been lifted. How has it affected the economy of N and E province? What are the factors inhibiting economic revival in this region?

The so-called 'free trade' agreement between India and Sri Lanka may fail to achieve its aims as have earlier arrangements between the two countries because policy-making in neither country involves the main stakeholders. The agreement is less than free and includes some elements of irrational protectionism.