Sri Lanka: Reshaping Economic Geography

July 1, 2011


Economic progress is accompanied by a fundamental transformation where the economic landscapes of countries become increasingly uneven and the social landscapes flatten. The journey from low incomes to high incomes involves rising concentration of prosperity in a few places. Connecting people to prosperity –is the principle behind economic integration policies that can help countries reap the benefits of both spatially uneven growth and inclusive development.

Chapter 1: Unbalanced Growth and Inclusive Development

By improving infrastructure links between the leading Western Province and the densely populated Central, Sabaragamuwa, and Southern provinces, producers will be able to specialize and produce at a larger scale. And by helping land uses change in the Eastern and Northern provinces, policies can facilitate economic transformation in an area that was divided until recently.

Chapter 2: Improving the Fluidity of Land, Labor, and Product Markets

This Chapter examines factors that enhance the spatial efficiency of production—through the transformation of land use, mobility of people, and connectivity of places.

Chapter 3: Policies for Connecting People to Prosperity.

By enabling people to seek economic opportunities and leveling the geography of basic living standards, policymakers can help in unifying Sri Lanka.