Ninth International Conference on Advances in Social Science, Economics and Management Study SEM - 2019
Author(s) : G. M. HENEGEDARA
The paper describes issues in adopting inclusive growth policies in transition of economy in Sri Lanka. It assess the impact of various inclusive growth policies on sustainable development. Inclusion of all the segments of the society has accepted as a required factor of sustainable development and thus all the nations follow inclusive growth strategies as broad based growth, shared growth and pro-poor growth policies. As an emerging market economy, the successive governments of Sri Lanka followed this ideology and implemented various policies and programs in view of assuring growth with equity and equality of opportunities in production process. Broadly it includes various programs such as social and physical infrastructure development, agricultural development, industrial and institutional changes made under protective, liberal and neoliberal policy frameworks since independence in 1948. However, the impact of policy interventions on economic growth were not fascinating in terms of stability and sustainability due to various setbacks. The paper expects to review the outcome of policy interventions in terms of receiving stable GDP growth rate, equity, equality of opportunity and protection in market and employment transitions along with identifying policy implications on sustainable development. The analysis was based on counterfactual evaluation method of comparing key economic indicators at different policy regimes during 1960-2016 period. It includes key indicators i.e. GDP growth rate, per capita income, savings, poverty, employment and equity. The analysis based on ttime series data revealed that growth policies had an impact on increasing. GDP growth rate and per capita income with sufficient improvement in human development indices. Nonetheless the pace of GDP growth rate insufficient to boost the economy as in other developed economies. Continues budget deficit and imbalances in BOP, Low savings and reliance on foreign capital, deteriorating terms of trade and political instability led to peg the country with debt trap, that cussed as the main hinder for inclusive growth..