Economic Effects of the Ethnic Conflict in Sri Lanka

INTRODUCTION
Sri Lanka, the beautiful island in the Indian Ocean filled with natural resources is almost a paradise. But with the curse of the ethnic conflict it merely transformed to an agony. Sri Lanka gained independence in 1948, after almost 450 years of colonial rule under the Portuguese, Dutch, and British. This history and the country’s closeness to India helped to produce a poly-ethnic, multireligious population consisting of Buddhists (69%), Hindus (15%), Muslims (8%), and Christians (8%). Britain’s colonial policies and practices created a gap, especially between the majority Sinhala and the minority Tamils. Post-independence Sinhalese elites made use of this division both to track anti-Tamil policies that benefited their community and to build a Sinhalese Buddhist nation-state that marginalized minorities. Tamil elites initially demanded a federal solution whereby mainly northeast, considered part of the Tamil homeland. So they could enjoy independence, from the Sinhalese-dominated south. When such demands were disregarded they uproar for a separate state, in 1970’s. The state’s biased policies led to anti-Tamil riots in 1956, followed by deadlier riots in 1958, 1978, 1981, and 1983. The 1983 riot was especially horrific and caused thousands of Tamils to flee to India and Western countries as refugees, producing a vibrant Sri Lankan Tamil diaspora. This diaspora plays a major role in financing the Tamil separatist struggle now waged by the Liberation Tigers of Tamil Eelam (LTTE). By eradicating other Tamil agents and organizations, the LTTE claims to be the Tamils sole representative. So this ethnic conflict turns in to a civil war since 1983. And it too takes a mode of terrorism since that. This conflict between the Sri Lankan government and the LTTE has killed more than 70,000 people. Most agree that a political solution to the conflict is necessary. The two main parties carry out four attempts to reach a peace agreement. Successive attempts at peace...