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Sri Lanka NATURE OF THE ECONOMY
![[JPEG]](http://lcweb2.loc.gov/frd/cs/jpeg.gif)
Villagers and cart in rural Sri Lanka, circa 1910
Courtesy Library of Congress
Sri Lanka's economic prospects in early 1988 were linked at
least in part to the political and security situation. If
political violence could be brought under control, the government
had commitments from foreign investors and donors to finance a
reconstruction program that would ensure economic growth in the
short term. If the violence were to continue, the diversion of
resources into defense and the negative impact on tourism and
foreign investment appeared likely to result in economic
stagnation.
Data as of October 1988
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![[JPEG]](http://lcweb2.loc.gov/frd/cs/sri_lanka/lk03_01a.jpg)
