I have received a copy of latest Economic and Market analysis done by City group, according to the report, Sri Lanka’s economy remains resilient. Its economic growth is likely to remain around 6% in 2007 despite the ongoing spending on war, political issues and a devastating tsunami in 2004. Moreover, Sri Lanka is the first South Asian economy with a per-capita income of over US$1000; besides, country has the highest inflation and fiscal deficit in the sub-continent…, (see the below graph), since countries Rupee was allowed to float since early 2001, following the removal of administrative controls., under the present exchange rate system, forces of demand and supply in the market determine the rate. Central bank only intervenes to prevent excessive volatility and maintain a comfortable level of reserves. Anyone can weigh these statistics and come to their own conclusions, people live in the country have a better judgment than living aboard. Arguably, countries development is moving forward with more than an acceptable level with a huge military expenditure. In other hand corruption and criminal influence on the political system have increased, some argue government is attacking moderates who are critical of its approach and has given room to nationalist extremists, who incite further communal strife.

In reality LTTE is struggling to survive both militarily and politically, yet most of the media remain far from realism primarily after the censorship. After supply routes being cut off, eastern administration being toppled, EU and Canadian ban on the terrorist outfit, dishearten Diaspora; tigers working hard with their propaganda machinery to bring their lost face. Politically bankrupt tigers in a tenuous situation to come forward for negotiation. After the death of their chief strategist they pushed into a corner with no other choice, since `80’s LTTE never came to the negotiation table with a weak position and they will never ever. Million dollar question is will tigers ever compromise with the Prabakaran’s leadership? Will he ever agree for a second best? But governments APRC is pushing for a political solution with power devolution, anyhow with a majority agreed solution, will there be a trust and goodwill between these two groups where LTTE to drop their arms and come to democratic stream and get elected by the people? Highly unlikely with the current climate especially after GoSL vowed to defeat LTTE militarily within 2-3 years. Majority of the country may support that coz that is the fastest route to end this ongoing bloodshed. However, moderates worried about the impact to the economy, international isolation, rising inflation etc., as a developing country, can Sri Lanka cope with this war for another couple of years without international support? I would say YES only if we unite as Sri Lankans, Synergistic power is a vital tool at this crucial juncture, but in reality power hungry opposition and other rebellious parties and their allies trying t0 fish in the troubled waters.
