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Country Partnership Framework Sri Lanka Essay

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Country Partnership Framework – Sri Lanka Review
Sri Lanka will soon celebrate its 69th Independence Day on 04th February 2017. Although it gained its independence from the British Rule in 1948, many significant events since, have impacted the country’s growth and economic development. Notably the rise of Tamil militancy in the 1970s that only ended with the Sri Lankan military defeating the LTTE in 2009, the new constitution that was introduced as recently as 1977, the continued civic unrest even till the 1990s and not to forget the Tsunami in 2004, etc. have all been harsh and hostile to the economic development of Sri Lanka.
In a Systematic Country Diagnostic (SCD) conducted by the World Bank Group (WBG), it has been found that the government has been struggling to generate adequate revenue to be able to save or invest in welfare related projects like health, infrastructure, education, etc. Poor foreign policies affecting foreign investments, the low tax to GDP rate, excessive government control in all sectors and ambitious policies have all contributed to the weak and straggling economy.
On the other hand, the World Bank on February 2016 notes that Sri Lanka has steadily reduced its poverty percentage against its overall population to less than 7%. The country’s economy that was predominantly agrarian and dependent on agricultural income has moved to the service and industrial sectors. Income inequality has also dropped in the past, with a gini coefficient of 0.36 in
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