Heightened volatility in the global economy and intensifying geopolitical rivalries pose complex policy challenges for small countries embarking on post-conflict development. These issues are nowhere better exemplified as in the case of Sri Lanka. The aftermath of the conflict was ripe with opportunities, but also posed daunting challenges. To sustain peace, development needed to be broad based and inclusive. It needed to rapidly reconstruct war-devastated regions and restore macroeconomic stability while delivering a ‘peace dividend’. It had to attract capital and assistance and support of the international community, including the rising Asian giants, China and India. But coping with adverse shocks, while exploiting new opportunities, has proved not to be easy. This book draws lessons from the story of Sri Lanka’s post-conflict development in the context of a struggle for socio-political reconciliation, a turbulent world economy, and difficult internal and external political challenges.
