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    Contemporary Economic Issues: Sri Lanka in the Global Context - weekly commentaries on economic issues published in the Sunday Island, 2005-2006
    (Sri Lanka Economic Association, 2006) Kelegama, Saman
    This book is based on weekly commentaries on economic issues published in the Sunday Island. The book covers an important period where a number of domestic and global events influenced the economy of Sri Lanka at regular intervals – a crisis in the electric power sector, the international oil price hike, GSP-Plus scheme coming into operation, operationalization of the Pakistan-Sri Lanka Bilateral Free Trade Agreement, steps to operationalize SAFTA, WTO debates before the Hong Kong Summit and the aftermath, growth of the Business Process Outsourcing industry, etc. The period under consideration also saw increasing inflow of aid, economic policy discussions and debates before the Presidential Election.
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    External Shocks, Adjustment Policies and the Current account: The Case of Sri Lanka, 1971-1991
    (Institute of Policy Studies, 1993) White, Howard; Kelegama, Saman
    A major methodological problem in the analysis of adjustment policies is the separation of the effects of the policies themselves from those of changing external conditions. In this study authors’ use, with some significant modifications, decomposition approach to the context of Sri Lanka for the period 1971 to 1991. The paper initially presents the methodology and its application to Sri Lanka. It also incorporates discussion of the debates concerning Sri Lanka’s macroeconomic performance in the 1980s and the impact of adjustment policies more generally. Finally the paper draws out the conclusions and policy implications of authors’ analysis.
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    Economic Reform and Governance: Second Wave of Liberalization in Sri Lanka 1989 - 93
    (Institute of Policy Studies, 1995) Dunham, David; Kelegama, Saman
    This paper examines the second wave of economic liberalization in Sri Lanka from 1989-93 (President Premadasa years) from both a traditional economic and from a governance perspective, looking at political and technical determinants of economic policy. Authors argue that the two dimensions are interwined, that political will is an weight from “bad” to “good” governance, a government can improve economic performance may be misconceived. The paper is also first attempt to fill a gap in the literature on Sri Lankan economic policy.
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    The Uruguay Round Agreement on Agriculture: Implications for Sri Lanka
    (Institute of Policy Studies, 1996, 1996) Athukorala, Prema-Chandr; Kelegama, Saman
    The paper begins with an introduction to the agricultural sector in the Sri Lankan economy (Section 2). Section 3 provides an account of the current agricultural production and trade policies while paying attention to their roots in Sri Lanka's economic policy history and the related socio-political considerations. Section 4 is the core of the paper. It examines Sri Lanka's commitments to date to the URAA and constraints to further compliance with URAA provisions, followed by an assessment of the impact of URAA on world agricultural trade from the perspective of global trading opportunities for Sri Lanka. The paper ends in Section 5 with some concluding remarks.
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    Policy Issues on Promoting Backward Linkages from the Garment Industry in Sri Lanka
    (Institute of Policy Studies, 1996, 1996) Kelegama, Saman; Foley, Fritz
    This paper examines the slow growth of local supplies to the garment industry in Sri Lanka. We have shown that the overall investment environment in Sri Lanka and international demand patterns constrain the formation of competitive local producers of fabric and garment accessories. We have also shown that building and maintaining sources of competitive advantage among producers of garment inputs are crucial to their development and viability in a highly integrated global economic environment. From the Sri Lankan garment industry experience and from the available evidence from other countries, we have argued, in general, that the empasis on backward linkages industrialization is somewhat misplaced. Changes in the global environment and international demand patterns have made backward linkage effects less powerful than they were for import-substitution industrialization strategy in a closed economy. Although local supplies are useful and vluable, they cannot function unless conditions exist which allow them to be competitive.
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    Privatization in Sri Lanka: the Experience During the Early Years of Implementation
    (Sri Lanka Economic Association, 1993) Kelegama, Saman
    This paper covers a very broad area while focusing mainly on the problems of privatization. The paper is divided as follows. Section 2 discusses the Sri Lankan privatization effort, with special emphasis on the background and preparatory work. Section 3 discusses the problems of privatization in Sri Lanka. Here we deal with the problems of the industrial sector in detail, and then outline the problems of the plantations and the transport sectors. Section 4 briefly examines some of the achievements of the privatization programme. Section 5 sets out some policy options for better prospects and concluding remarks.
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    External Shocks, Adjustment Policies, and the Current Account: The Case of Sri Lanka, 1971-1991
    (Institute of Policy Studies, 1993) White, Howard; Kelegama, Saman
    A major methodological problem in the analysis of adjustment policies is the separation of the effects of the policies themselves from those of changing external conditions. In this study authors’ use, with some significant modifications, decomposition approach to the context of Sri Lanka for the period 1971 to 1991. The paper initially presents the methodology and its application to Sri Lanka. It also incorporates discussion of the debates concerning Sri Lanka’s macroeconomic performance in the 1980s and the impact of adjustment policies more generally. Finally the paper draws out the conclusions and policy implications of authors’ analysis.
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    Liberalization and Industrialization: The Sri Lankan Experience of the 1980s
    (Institute of Policy Studies, 1992) Kelegama, Saman
    In this paper, the intention is to take a broad look at the developments in the industrial sector during the 1978-89 period, and offer an explanation for the prevailing weaknesses of the manufacturing sector. The paper also explores how effective liberalization has been in enhancing the industrial growth process. Certainly, there are various other means as well that one can adopt to analyse industrial growth. The liberalization framework is used here because it appears to be the core around which the Sri Lankan policy debate revolves. There are those who say that Sri Lanka's liberalization was inadequate to achieve rapid and sustainable industrialization. On the other hand, there are others who claim that Sri Lanka has liberalized far too much and this has worked against industrial progress. The paper takes a broad look at this debate and highlights some issues that are of relevance to policy-making.
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    The Economic Cost of the War in Sri Lanka
    (Institute of Policy Studies, 1999, 1999) Arunatilake, Nisha; Jayasuriya, Sisira; Kelegama, Saman
    There is growing interest in recent years in the economic dimensions of civil wars and other violent social conflicts. This paper discusses some of the conceptual and methodological problems associated with assessing the economic costs of such conflicts, and presents an evaluation of the costs of the (still ongoing) conflict in Sri Lanka. On conservative assumptions, the war may have cost the equivalent of twice Sri Lanka’s 1996 GDP.
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    Privatization: The Sri Lankan Experience
    (Institute of Policy Studies, 1992, 1992) Kelegama, Saman
    This paper covers a very broad area while focussing mainly on the problems of privatization. The paper is divided as follows: Section 2 discusses the Sri Lankan privatizatin effort, with special emphsis on the background and preparatory work. Section 3 discusses the problems of pirvatization in Sri Lanka. Here the problems of the industrial sector are dealt with in detial and, in general, the problems of the plantations and the transport sectors. Section 4 briefly examines some of the achievements of the privatization programme. Section 5 gives some policy options for better prospects and the concluding remarks.