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Common economic problems for Sri Lanka.

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  • Essay length: 2415 words
  • Submitted: 09/05/2008
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University Degree Economic Systems

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Introduction

There are two common economic problems for Sri Lanka, one would be that the increasing and unmanageable debt problem. And the other one would be the terrorist problem. Sri Lanka was considered as a lower-middle income developing country, but now it's been pushed down to poorest countries in the world. One quarter of the population in Sri Lanka lives in poverty. Twenty years of civil war between the government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE) will be the main cause of this problem. This war has claimed more than 50,000 lives. Even The governments of Sri Lanka been changed but the problem remains unchanged.

More than 50% people in Sri Lanka still live in rural areas and still living with traditional agricultural base lifestyle. The government process of developing these rural areas was quite slow. However the health and education systems are good compared to other regional countries in Southeast Asia, but now their quality is getting verse because of less government investment.

"In developing countries the major concern is that economic liberalization, motivated by the desire to benefit from the growth of the world trade and investment flows,

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