Waning Economic Euphoria and the Impending Crisis of Governance
Photo courtesy Media Centre for National Development of Sri Lanka The immediate post-civil war years of 2010 and 2011 in Sri Lanka were trumpeted as record-breaking eight percent or greater annual real growth rate of the Gross Domestic Product (GDP) for two consecutive years including the highest ever economic growth rate of 8.3% recorded in 2011. However, the GDP growth rate in 2012 is unlikely to exceed six percent and the prospect for 2013 is even less. Besides, post-civil war economic growth rates all over the world are always in double-digit and therefore there is nothing to gloat about the high single-digit growth rate in Sri Lanka in 2010 and 2011. The quarterly GDP growth plummeted to 4.8% during the third-quarter 2012; lowest quarterly growth rate since third-quarter 2009 (4.2%). The agriculture sector, in particular, recorded negative growth of (-) 0.5% during the third-quarter 2012 largely due to severe drought. The agriculture sector is expected to have declined even…
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