control the situation in northern Sri Lanka. This may be the reason the LTTE has been targeting the economy with bomb attacks in Colombo. The Sri Lankan economy has shown the ability to grow at 6 percent even when the war was at a peak. Achieving 8 percent growth with some degree of peace would not be impossible.
Citing the Malaysian experience in the context of ethnic diversity and economic policy, Prema-Chandra Athukorala indicates that economic policy-making in Malaysia after independence turned out to be a continuous struggle to achieve development objectives while preserving communal harmony and political stability. 31 Regrettably, in Sri Lanka this factor was not taken into account in economic policy-making. Sri Lanka would do well to take a lesson from the Malaysian experience.