Foreign aid in the making of economic policy in Sri Lanka, 1977-1983

In: Research Memorandum Series, 106

Abstract

The paper analyzes the interaction between inflows of foreign aid and the character of the economic policies pursued by the Sri Lankan government between 1977 and 1983. It predominantly enabled the government to push forward with the Mahaweli irrigation scheme on a scale that worked against both liberalization and other components of public investment. The process that led to the adoption and funding of the Mahaweli scheme and continued support for it after its impact on the overall economic program which had become apparent, is examined in detail. (DÜI-Sbt)