Working Papers in Trade and Development Victory in war and defeat in peace: politics and economics of post-conflict Sri Lanka Prema-chandra Athukorala The Australian National University and Sisira Jayasuriya Monash University June 2015 Working Paper No. 2015/10 Arndt-Corden Department of Economics Crawford School of Public Policy ANU College of Asia and the Pacific This Working Paper series provides a vehicle for preliminary circulation of research results in the fields of economic development and international trade. The series is intended to stimulate discussion and critical comment. Staff and visitors in any part of the Australian National University are encouraged to contribute. To facilitate prompt distribution, papers are screened, but not formally refereed. Copies may be obtained at WWW Site http://www.crawford.anu.edu.au/acde/publications/ Victory in War and Defeat in Peace: Politics and Economics of Post-Conflict Sri Lanka Prema-chandra Athukorala Arndt-Corden Department of Economics Crawford School of Public Policy Australian National University
[email protected] Sisira Jayasuriya Department of Economics Monash University
[email protected] Abstract This paper examines causes and implications of Sri Lanka’s political regime shift in February 2015, which has been widely hailed a victory for democracy, against the backdrop of the country’s political and economic development in the post-independence era. The regime shift vividly demonstrates that voters, given the chance, turn against leaders they perceive to be corrupt, nepotistic or needlessly divisive, even if they deliver handsome growth figures; there are limits to gaining political legitimacy in a multi-ethnic state simply by creating cleavages between majority and minority communities.