Abstract
A review of Sri Lanka’s strategies to deliver substantial and equitable growth paints an arresting picture for those interested in understanding the dynamics of development endeavors in emerging Asia. When examined from a broader perspective, the island nation wields a track record antithetical to South Asia’s postcolonial developmental woes. It has experienced marked success in raising human development indicators to a standard comparable with that of advanced nations while utilizing resources in a manner that belies its modest income levels.
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Notes
- 1.
As per a study conducted by Arunatilake et al. (2001), the Economic cost of the Sri Lankan war, as of 2000, was estimated at twice of Sri Lanka’s 1996 GDP. This can be equated to roughly around US$26 billion. Given that the hostilities increased over the decade, the cost can only be expected to be much higher.
- 2.
In “A History of Sri Lanka” (1981), K. M. De Silva argues that the recommendations made by the Colebrooke–Cameroon bear many similarities to Bentinck’s reforms in India. However, according to De Silva, the former was “more far reaching in impact and more consistent in the application of liberalism.”
- 3.
The manufacturing sector was briefly expanded during the Second World War due to the severance of trade routes by axis forces. However, development was quite miniscule as the initiative was state-driven with minimal private sector involvement.
- 4.
Sri Lanka was the pioneer of policy liberalization initiatives in a South Asian context (at least on a postindependence perspective) with reforms implemented “a decade or more ahead of its neighbors” (Yiping et al. 2013)
- 5.
The impact of the Sri Lankan civil war on industrial fortunes cannot be overstated. For a more ornate overview of the economic (and therein manufacturing) costs of conflicts, a perusal of Arunatilake et al. (2001) is encouraged.
- 6.
A contemporary overview of the manufacturing sector suggests that the noted weaknesses continue to persist. Sri Lanka experiences lopsided industrial growth due to a dependency on textile and garments manufacturing. Export orientation has been persistently inadequate with aggregate export revenue steadily declining over the recent past.
- 7.
Athukorala argues that the civil war was one of the primary reasons for Sri Lanka’s virtual absence in Global Value Chains. Integrations into such networks require extensive domestic stability as corporations are wary of issues that disrupt the entire production process.
- 8.
Many observers consider the composition of the government as one of the primary inhibitors for policy reform. The presiding coalition comprises an uneasy alliance between a center-right party and a center-left party that have traditionally vied for power during much of Sri Lanka’s postindependence history. The past two years have been marked by constant intra-governmental tussles and one-upmanships, precipitated by ideological differences.
- 9.
This composition statistic denotes a decrease when compared with the export performance in 2001. In that year, apparel’s composed approximately 59% of Sri Lanka's export revenue for the year 2016 was generated by the apparel sector alone
- 10.
A UNESCO Institute of Statistics study estimates that the literacy rate for South Asia was 67% in 2013 with only 57% of women being able to read and write.
- 11.
While this statistic does reveal discrepancies in participation rates, a closer examination suggests that an overwhelming majority—roughly approximated to around 65%—of this inactive population are women. Perhaps this is a symptom of a much larger issue elaborated in another section.
- 12.
Figures have been derived from budget estimates provided by the Ministry of Finance. Capital expenditures into higher education and vocational training have been computed by referring to budgetary allocations to the Ministry of Higher Education and the Ministry of Skills Development and Vocational Training.
- 13.
Given the constraints to capacity, Dundar et al. (2014) estimated that approximately 10,000 students leave to study in halls of education outside the country.
- 14.
Chandrasiri (2010) states that prominent TVET institutions construct programs designed for those with a lower secondary level of education. Thus, the depth of training tends to be quite low.
- 15.
Statistics given for World and East Asian states are derived from ILO databases where national statistics are adjusted to account for discrepancies.
- 16.
The existence of this preference is affirmed by a report prepared by (Arunatilake and Jayawardena, Explaining Labor Market Imbalance in Sri Lanka, 2014), which examines Jobsnet data to analyze labor market tendencies.
- 17.
Such recruitment drives tend to be staggered with employment provided in batches over a time period.
- 18.
The region is home to approximately 1.76 billion citizens which surmounts to 24% of the world’s population (World Bank 2017).
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Subramaniam, V. (2019). Export-Oriented Manufacturing: A Viable Engine of Economic Growth and Labor Generation for Sri Lanka. In: Chaturvedi, S., Saha, S. (eds) Manufacturing and Jobs in South Asia. South Asia Economic and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-10-8381-5_7
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