Conflict and structural adjustment in Sri Lanka

This Precis entitled, Conflict and structural adjustment in Sri Lanka, complements the Bank's Operations and Evaluation Department (OED), Performance audit report, Sri Lanka : Economic restructuring credit, and the Public manufacturing enterprises adjustment credit, Report No. 15820, dated June 26, 1996. The audit notes that if growth with equity is to continue in Sri Lanka, the government must pursue stabilization. This means improving the quality of public expenditures, and hence a renewed effort to rationalize the civil service. For the Bank, the audit recommends supporting smaller, less ambitious adjustment programs in highly aid-dependent and strife-torn countries like Sri Lanka.