The Impact of a Successful Cease Fire Agreement on the Sri Lankan Economy

In the evening of Wednesday 13th September 2006, FNF and Gerakan invited the Honorable Ravi Karunanayake, former Minister of Trade and Commerce of Sri Lanka, to give a talk on “The Impact of a Successful Cease Fire Agreement on the Sri Lankan Economy” at Menara PGRM. The talk was moderated by YB Tan Lian Hoe, Wanita Chief of Gerakan, and was attended by central committee members as well as party members.

The Honorable Ravi mentioned that we have to take into consideration the history of Sri Lanka before we understand the entire scenario of what had happened prior to the ceasefire agreement. Sri Lanka gained independence in 1948 as Ceylon with the country’s name changed to Sri Lanka in 1972. In 1983, the war between the Sinhalese majority and Tamil separatists erupted. After two decades of fighting, the government and the Liberation Tigers of Tamil Eelam (LTTE) signed a ceasefire agreement in February 2002 facilitated by the Norwegian Government. He argued that under the premiership of Ranil Wickremesinghe, “who converted a very vulnerable economy into a robust economy”, there had been a 4.6% increase in economic growth and a reduction in unemployment. He revealed that Sri Lanka’s balance of payments was favourable, overall inflation had been reduced and the cost of living was declining.

However, since the conflict between the LTTE and the Government has resumed after the cease-fire agreement, the economy has again been hurt and the government must find way to negotiate and find the possible solution as soon as possible.

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