Articles by Saman Kelegama

WTO negotiations so far have shown that when countries forge alliances they can generate synergies and become powerful players. The EU, Cairns Group and the African bloc have emerged as influential groups within the WTO. Several factors have stalled the evolution of a common position among south Asian countries: regional politics and antipathies, the economic disparity in the region, and the temptation for individual countries to draw up independent arrangements with developed countries in return for trade favours often detrimental to regional interests. Will south Asian countries function with a common agenda at Cancun?

The experience of economic liberalisation in Sri Lanka has coincided with the nearly 20-year long civil strife in the nation's north and east. An attempt is made here to trace the economic reform programme since the war began. For the economy to be brought back on track the cumbersome task of balancing the needs of long-term economic management with the immediate demands of the current ceasefire and peace initiatives has to be undertaken.

Political crises and economic mismanagement are to account for the grave state of Sri Lanka's finances. While reform programmes under the aegis of the IMF promise some succour, these are accompanied by strict conditionalities. The new Sri Lankan government has thus to take some vital political decisions - negotiating with the LTTE to end the long-drawn civil strife in the north-east and implement a harsh budget that will assist a revival of the economy in the long run.

Independent Sri Lanka's failure to live up to its initial promise in the area of economic development could be attributed inter alia to: (a) a foreign-exchange crisis which persisted till 1977 because the exigencies of electoral politics bound the country to welfare-oriented, inward-looking policies; and (b) the eruption of conflict between the two main communities as of 1983.