Sri Lankan Economy in Turbulent Times

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.