Abstract
ABSTRACT Sri Lanka was the first South Asian nation to embark upon a comprehensive package of economic liberalization and deregulation. This paper examines the growth, employment and distributional effects of economic liberalization and deregulation in Sri Lanka. During the post- 1977 era of liberalization, Sri Lanka's degree of international integration has increased substantially, linking the outcomes of liberalization and deregulation closely to the process of globalization. Overall, Sri Lanka has achieved higher growth rates of exports and thereby, higher economic growth rates and lower unemployment rates. The initial increase in the inequality of income distribution has not continued in the long run.
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