Sri Lankan economy grows as the ethnic-war comes to an end Special

After decades of war, the Sri Lankan economy is starting to sprout as banks are continuing to open new branches, free trade is booming after the government opened a new highway and sales have doubled. But at what cost?

The trials and tribulations of the Sri Lankan nation can be viewed as tragic and brutal, however, a progressive economic boom is starting to happen on the place that has been dubbed “The Tear Island”, which is known mostly for its civil war that began in 1983 between the government and the Tamil Tigers. Despite the daily occurrence of war, Sri Lanka has experienced financial growth for ten years with a GDP of $40 billion and growth of about 6 per cent, according to the CIA World Factbook. Exports are worth just under $8 billion per year and contain rice, sugarcane and diamonds and its major trading partner is the United States. The northern district of Jaffina is experiencing the highest success since the war ended in May. The military opened the main north-south A-9 road in July, which will now allow companies to trade back and forth but it is under tight watch by government forces. Banks are beginning to expand business and open new branches as the Central Bank has approved dozens of branches and sped up access to credit. For several years, many Jaffina residents have kept their money outside of the banking system and even converted their money into gold or foreign investments. Central Bank of Sri Lanka released a report “External Sector Performance – August 2009”, which states the exports will continue to increase during the remaining months of 2009 and 2010. It went on to further state that the trade deficit has decreased by 76.9 per cent, which is the third lowest deficit in the last five years, according to The Hindu. “Earnings from exports, which took on an increasing trend since April 2009, reached US dollars 710 million in August, recording the highest monthly value thus far in 2009," the report concluded. The Peninsula Qatar reports that Sri Lanka's economy is expected to grow by 9 per cent. During 1983, the government had been spending $2 billion per year on the civil war so now it is expected that it would be spent on infrastructure. K. Devendrarasa, a 56-year old grape farmer, told Reuters on Tuesday, “In bad times, I had to sell a kilo of grapes at 30 rupees... now I am getting a wholesale price of 200 rupees per kilo. We need more finance for expansion and investment.” The prices of consumer goods have dropped by 15 per cent and the market price of produced items have doubled. “Earlier we paid 500,000 rupees ($4,350) for a truckload for shipping, but now we only pay 100,000 [rupees],” Perambalam Naharathnam, the owner of a hardware and cycle shop, said. Fishermen have also stated that their profits are increasing everyday as the government eased restrictions on a fishing ban, which has helped them meet the demand for prawns, lobsters and crabs. Nevertheless, a large amount of business owners and entrepreneurs still believe it’s hard to make a living because security is too strict and that only politically-connected people can transport units, thus, making deliveries or transport virtually a difficult task. However, the government has pledged that once a stable administration is in place then lax security restrictions will take affect. Last week, Prime Minister Ratnasiri Wickramanayaka met with China's Premier Wen Jiabao, according to Sri Lanka's Daily News, where Jiabao congratulated Sri Lanka of ending terrorism and said his country is still willing to support Sri Lanka's sovereignty and economic prosperity, "We value our strong friendship and cooperation with Sri Lanka." Wickramanayaka responded, "Assistance from China has been enormous... reconstruction and improvement of the standard of living of the people in Sri Lanka is now our priority... we look forward to China’s continued support in future." But Tamils are not contributing to the economy in any way as 300,000+ men; women and children are barricaded in barbed-wire camps. Senthan Nada, a spokesperson for Coalition to Stop the War on Tamils in Sri Lanka, told Digital Journal on Wednesday, "Tamils becoming successful entrepreneurs or industrialists in Sinhala Sri Lanka is highly minimal due to Govt. sponsored anti-Tamil pogroms which are embedded in the Sinhala extremist's psyche. Clear example is the destruction of assets, properties and livelihoods belongs to thousands of Tamil businessmen and industrialists during the Anti –Tamil riots which practically happens in cycles ( 1958 – 1960 – 1966 – 1977 – 1983 ) in that country." Digital Journal reported throughout the last two demonstrations that Tamils are calling for boycotts of many aspects of the Sri Lankan economies whether it's agriculture, airlines and anything else that is crucial to the Sri Lankan economy. Nada further added, "Boycotting Sri Lankan products and services coupled with other form of reduction in international aid will have serious consequences to the country in a long run and hold the country accountable for every Human rights violation in the book committed by Sri Lanka against the minority Tamils."