Abstract:
Since 1977 the government of Sri Lanka implemented a series of economic
reforms to create a more open economic environment and integrate the
economy with the global trading system with the ultimate objective of
creating an enabling economic environment so that production and other
resources are used more efficiently to improve the living standards of
people. The benefits of trade liberalisation, however, do not seem
sommensurate with the extent of reforms in comparison to other countries
that introduced similar reform measures. This paper argues that one of the
main reasons for the failure in Sri Lanka's poor attention to the creation of
an enabling policy and regulatory framework that would have enhanced
the supply capacity of the country. Without paying adequate attention to
the creation of an enabling policy and regulatory framework, Sri Lanka
will not be able to reap the benefits of freer international trading
environment of domestic trade liberalization.
