ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Effects of Conflict on Economy in Northern Sri Lanka

Effects of Conflict on Economy in Northern Sri Lanka Paul Seabright The economic effects of disturbances short of full-scale war such as those that currently prevail in Northern and Eastern Sri Lanka, extend well beyond those people and institutions directly touched by the violence. This paper examines the economic conditions in the Jaffna peninsula which is connected to the mainland by a single road through which all trade must pass. While the focus of the paper is on the trade and production disruptions and consequent market distortions, it also looks at the macro-economic repercussions of the conflict, such as those arising from Sri Lanka's foreign exchange constraints.

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