A Reviewof Inclusive Growth Policies in Sri Lanka

Abstract

As a new development concept, inclusive growth strategies are implemented by many countries so as to balance the development along with sustainable wealth creation and inclusion of all segments of the society as the shareholders of development. The concept refers both pace and pattern of growth in view of long term sustainability, broad based across sectors and inclusion of large portion of labour force.The successivegovernments of Sri Lanka were also followed this concept and implemented various programs so as to assure growth with equity and equality of opportunities along with liberal and protection policies. Therefore, the main objective of the paper is to review whether the inclusive growth oriented policies implemented in Sri Lanka since independence were successful in ascertaining broad based sustainable development through increasing economic growth and sharing growth through employment opportunities sustainably. Thus the analysis was based on reviewing variousgrowth approaches followed during three policy regimes i.e. inward looking, outward looking and Mahinda Chintana since independence. It also assessed the effects of inclusive growth policies and approaches on changing living standards of people and assuring inclusive development in the rural agricultural sectors. The methodology of the paper was based on quantitative analysis that derived from the secondary sources of information published by the Central Bank of Sri Lanka, Department of Census and Statistics, and the Ministry of economic development. The studyconsists of four sections i.e. need for inclusive growth, approaches to inclusive growth, the effect of inclusive growth policies and policy implications. The analysis revealed thatthe effectsof inclusive growth approaches followed since 1950s were effective in improving social infrastructure and reducing rural poverty in Sri Lanka significantly. But inclusiveness for employments, market creation and ultimate objective of gaining sustainable economic prosperity is still beyond the expectations due to some bindings affected as the constraints.