Economic growth, income distribution and social equity in Sri Lanka

In this paper an attempt is being made to discover and discuss the current theoretical concerns on the issue of economic and social equity. Secondly, an analysis on economic inequality and its journey from early 1970s to 2010 is presented. Thirdly, policies attempted to bring about a greater equality and its implications and their outcomes are examined. The time dimension and inequalities in terms of opportunities, abilities, and spatiality are measured using historical and current data available through income and expenditure surveys. The impact of economic transition from closed to open model on income distribution and the impact of prolonged civil conflict on spatial dimensions of economic and social inequality is also investigated.

Also, the claim which is widely made known by the Central Bank, that following the current growth trajectory, the per capita GDP would be raised to US$ 4000 by 2015 from the current level of US$ 2922 (2012) is examined using the current statistical evidences. The analysis suggests that, if the “head and shoulder” pattern of economic growth becomes a sustained feature, it is highly unlikely to expect a significant improvement in the prevailing pattern of income distribution, at least during the near future.

Sri Lanka Journal of Advanced Social Studies, 2013; Vol 3(1); Page 3-25

DOI: http://dx.doi.org/10.4038/sljass.v3i1.7126