Two years have passed since President Rajapakse took office in November 2005 and therefore it is timely to review the performance/management of the economy, which I term Mahindanomics. The salient features of Mahindanomics are the following
In spite of rising GDP growth rate, declining unemployment rate, and strong stock market performance the Sri Lankan economy is showing signs of severe strain in terms of rising inflation, negative real interest rate, rising budget deficit, sharp increase in broad money supply, depreciation of the rupee, increasing current account deficit, and fast depleting overall balance in the external balance-of-payments
The Sri Lankan economy is on a precipice as a result of prolonged drought, soaring world oil prices, absence of clear and tangible economic policy framework, and lack of progress in kick starting the peace talks.
The proposal by the LTTE on behalf of the Tamil people for an agreement to establish an Interim Self Governing Authority for the North East of the Island of Sri Lanka” reads the preamble of the LTTE proposal, and therefore every single Tamil person in Sri Lanka has the right to comment on this proposal. It is this inalienable right the reviewer exercises here.
Occasional Topical Notes
