• Policy Perspectives
• Economic Performance
◊ Introduction
◊ Output growth Q1-2000 : Q2-2001
◊ Fiscal outturn
◊ Interest rates and the exchange rate
◊ Inflation
◊ Balance of payments
◊ Capital markets
• International Environment
◊ Global trends in the pre-shock economy
♦ OECD economies
♦ Emerging economies and Russia
◊ The after-shock economy
◊ Implications for Sri Lanka of international developments
♦ Global outturn
♦ Preferential liberalization initiatives
♦ Sri Lanka’s future in the sea
• Competition policy and regulation
◊ Introduction
◊ Competition policy in the Sri Lankan context: a developing country perspective
◊ The competition regime in Sri Lanka: a comparison of the old and the new
◊ Competition policy in practice – the FTC at work 1995-2000
◊ Limitations of the new legislation
♦ Limitations of the substantive law of the FTCA/CPA
♦ Institutional limitations
♦ Limitations specific of the CPA
◊ Conclusions
◊ Case Study 1: Privatization of Colombo gas company and competition in the LPG sector
◊ Case Study II: TRIPS, competition and the pharmaceutical industry
• Free float of the exchange rate
◊ Introduction
◊ Floating the rupee: the proximate causes
◊ How ‘free’ is the float?
◊ Policy implications of a floating regime
◊ Floating with an anchor: inflation targeting
• Between bilateralism and regionalism: Focus on the Sri Lanka – Pakistan bilateral free trade agreement
◊ Introduction
◊ Profile of Sri Lanka-Pakistan trade
♦ Exports
♦ Imports
◊ Impact of a bilateral FTA
◊ Lessons from the Sri Lanka-India FTA – a year after
♦ The outturn
♦ The lessons
◊ Conclusion
• Governance
◊ Introduction
◊ Overlap of institutions
◊ Effective public policy management
◊ The community-governance nexus
◊ Human resources
◊ Conclusion
• Crisis in the power sector
◊ Introduction
◊ Profile of electricity demand
◊ The twin crises – the capacity crisis and the financial crisis
♦ Development of electric generation capacity
♦ Financial performance of CEB
◊ Addressing the capacity crisis
◊ Outlook for tariffs and rural electrification
♦ Electricity tariffs on the rise?
♦ Rural electrification jeopardized?
◊ Conclusion
• Aid and aid under-utilization
◊ Introduction
◊ Profile of aid in Sri Lanka
♦ Commitments of loan and grants
♦ Disbursements of loans and grants
◊ Aid utilization problem
◊ Factors limiting the utilization of aid
◊ Conclusion
• Prospects
• Diary of Events July 2000 – June 2000
• Appendix A: Macroeconomic Indicators
• Appendix B: Capital Market

Sri Lanka: State of the Economy 2001
Table of Contents