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Navigating Conflict: Sri Lanka's Economic Survival and Lessons for Pakistan


The Sri Lankan Civil War, which lasted from 1983 to 2009, was rooted in deep-seated ethnic tensions between the majority Sinhalese and the Tamil minority. After gaining independence from British rule in 1948, the Sinhalese-dominated government implemented policies that marginalized Tamils, such as the Sinhala-only language policy introduced in 1956. These measures fostered resentment and demands for autonomy among Tamils, ultimately leading to the emergence of the Liberation Tigers of Tamil Eelam (LTTE) in the late 1970s. The LTTE aimed to establish an independent Tamil Eelam in the northern and eastern regions of the country.

Despite the brutality of the war, which included widespread violence and human rights violations, Sri Lanka’s economy demonstrated resilience during this period. The geographic concentration of the conflict primarily in the north and east allowed the southern and western regions, including the capital, Colombo, to remain relatively stable. Key industries, such as tea and garments, thrived despite the ongoing conflict. The tea industry, a major export, was centered in the central highlands, far removed from the fighting. Similarly, the garment sector benefited from favorable trade agreements, such as the Generalized System of Preferences (GSP) with the European Union, which facilitated access to international markets.

Tourism, although initially disrupted, experienced a revival in the early 2000s when periods of relative calm attracted international visitors. Government efforts to promote Sri Lanka as a tourist destination for eco-tourism and cultural experiences contributed to the sector’s recovery. Additionally, remittances from Sri Lankan workers abroad, especially in the Middle East, provided a critical economic lifeline, supporting families and bolstering foreign exchange reserves.

The government also implemented pro-business policies and invested in infrastructure projects, such as expanding the Colombo Port, to maintain economic growth despite military expenditures related to the war. However, the conflict inflicted severe social and economic costs, particularly in the war-torn northern and eastern regions, where communities suffered from displacement, loss of infrastructure, and underdevelopment.

For Pakistan, there are crucial lessons to be learned from Sri Lanka’s experience. First, the importance of geographic and sectoral economic diversification is evident. Like Sri Lanka, Pakistan has areas affected by conflict, but much of the country remains stable. Focusing on bolstering industries in stable regions can help mitigate the broader economic impacts of unrest. Second, remittances can serve as a vital economic buffer during periods of instability, highlighting the need for Pakistan to leverage its overseas workforce effectively.

Furthermore, Sri Lanka’s ability to promote tourism despite the conflict stresses upon the potential for Pakistan to develop its own tourism sector. By enhancing security and infrastructure in key tourist areas, Pakistan could tap into its rich cultural heritage and natural beauty, attracting visitors and generating revenue. Finally, addressing regional disparities and investing in human capital are essential for fostering national unity and preventing unrest. Just as Sri Lanka’s neglect of Tamil grievances contributed to its civil war, Pakistan must prioritize inclusive development in regions like Balochistan and Khyber Pakhtunkhwa to build a more cohesive society.

The Sri Lankan Civil War, while devastating, offers valuable insights into maintaining economic stability amid conflict. By learning from Sri Lanka’s experience, Pakistan can focus on resilience, inclusive policies, and conflict resolution to foster sustainable development and avoid the deep scars of prolonged internal strife.

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