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

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What Are the Impediments?

Economic Revival in North and East Sri Lanka

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?

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