This is an exploratory study on the extent and causes of informal economy in the conflict region of Sri Lanka. The extent of informal economy in monetary terms in the conflict region is estimated to be roughly 30% of the Provincial Gross Domestic Product of the North & East Province in 2004. Lack of government administration, law enforcement and judicial services, and economic sanctions are identified as the primary causes of informal economy in the conflict region. It is argued that informal economy in conflict-affected countries/regions is transnational by nature and therefore policies to combat the informal economy needs international cooperation.

"Will be of interest to those working on conflict and peace studies, economic development, cultural studies, and women in the modern world. A key new publication." --Chandra R. de Silva, Old Dominion University ..". offers a superb overview of how a civil war, driven by ethnicity, can engender a new culture and a new political economy... Highly recommended." -- Choice Economy, Culture, and Civil War in Sri Lanka provides a lucid and up-to-date interpretation of Sri Lankan society and its 20-year civil conflict. An interdisciplinary examination of the relationship between the economy, broadly defined, and the reproduction of violent conflict, this volume argues that the war is grounded not just in the goals and intentions of the opposing sides, but also in the everyday orientations, experiences, and material practices of all Sri Lankan people. The contributors explore changing political and policy contexts; the effect of long-term conflict on employment opportunities and life choices for rural and urban youth; life histories, memory, and narratives of violence; the "economics of enlisting" and individual decisions about involvement in the war; and nationalism and the moral debate triggered by women's employment in the international garment manufacturing industry. Contributors are Francesca Bremner, Michele Ruth Gamburd, Newton Gunasinghe, Siri T. Hettige, Caitrin Lynch, John M. Richardson, Jr., Amita Shastri, Deborah Winslow, and Michael D. Woost.

At the point of independence in 1948, Sri Lanka was projected to be a success story in the developing world. However, in July 1983 a violent ethnic conflict which pitted the Sinhalese against the Tamils began, and did not come to an end until 2009. This conflict led to nearly 50,000 combatant deaths and approximately 40,000 civilian deaths, as well as almost 1 million internally-displaced refugees and to the permanent migration abroad of nearly 130,000 civilians. With a focus on Sri Lanka, this book explores the political economy of ethnic conflict, and examines how rival political leaders are able to convince their ethnic group members to follow them into violent conflict. Specifically, it looks at how political leaders can influence and utilize changes in the level of economic liberalization in order to mobilize members of a certain ethnic group, and in the case of Sri Lanka, shows how ethnic mobilization drives can turn violent when minority ethnic groups are economically marginalized by the decisions that the majority ethnic group leaders make in order to stay in power. Taking a political economy approach to the conflict in Sri Lanka, this book is unique in its historical analysis and provides a longitudinal view of the evolution of both Tamil and Sinhalese ethnic drives. As such, this interdisciplinary study will be of interest to policy makers as well as academics in the field of South Asian studies, political science, sociology, development studies, political economy and security studies.

With reference to North and East provinces of Sri Lanka.

This volume summarizes a series of studies undertaken to better understand the current socioeconomic context of the Northern and Eastern provinces in Sri Lanka. Nearly a decade after the end of the Sri Lankan civil war, the Northern and Eastern provinces lag in key social and economic measures. The study was made up of six background studies focused on (i) the provincial economies and economic structures of the North and East; (ii) labor force dynamics; (iii) demographic changes and impacts on vulnerability; (iv) the psychosocial needs of the local population; (v) community and social institutions; and (vi) livelihood trends and impacts of the war on productive assets. These studies were informed by both primary data collection, as well as secondary data sources and literature. The key findings from the assessment show that significant public investments in the Northern and Eastern provinces have resulted in growth and convergence between these provinces and the rest of the country. However, pockets of poverty and deprivation remain across these provinces, and the economic base of the region has yet to fully recover from the impacts of the civil war. Social vulnerabilities were persistent across the Northern and Eastern provinces, and were closely linked with poverty rates. With the demographic impacts of the war, vulnerabilities for women are growing in the region. There was a high rate of psychosocial needs recorded, and evidence that the social fabric has not been fully restored since the war. Citizen engagement, trust, and accountability remain important priorities, alongside economic revival, job creation, and restoring the social fabric and local institutions.