Cultivating the Pearl: Australia’s Economic Relations with Sri Lanka

Research team

Prema-Chandra Athukorala
Ric Shand


E Book


The IPS Publication is available for sale from the IPS premises at No. 100/20, Independence Avenue, Colombo 07 (Tel: +94-11-2143107, +94-11-2143100), and bookshops island-wide. For more details, contact the IPS Publications Unit.



Published Year

June 1997


US$ 15 (for hardcopy)

This study aims to assist policy making bodies and the business community in both Australia and Sri Lanka to devise strategies and policies to promote mutually beneficial trade, investment and aid relations between the two countries. Towards this end, it undertakes and in-depth inquiry into the nature and evolution of Australia – Sri Lanka economic relations in the context of economic liberalization policy reforms in Sri Lanka since 1977. Particular emphasis is placed on the scope and operation of the Australian aid program to Sri Lanka and special contributions made by Australia within it towards economic and human resource development in Sri Lanka .


Table of Contents

  • List of Tables
  • List of Figures
  • Abbreviations and Acronyms
  • Acknowledgements
  • Foreword
  • Executive Summary
  • Introduction: Purpose and Scope of the Study
  • Sri Lanka : A Profile of the Economy
  • Trade and Investment Policy
  • Trends and Patterns of Foreign Direct Investment
  • Australian Firms in Sri Lanka : Profiles, Performance and Perceptions
  • Australia-Sri Lanka Trade Links
  • Australian Aid to Sri Lanka
  • Policy Implications
  • Appendix A: Incentives for Foreign Investors in Sri Lanka
  • Appendix B: Questionnaire
  • References

by Prema-chandra Athukorala and Ric Shand