Market-based reforms : an empirical analysis of privatization in Sri Lanka

Among many other preconditions, a proper institutional framework is a significant for successful implementation of privatization policy. This paper argues that the institutional framework in Sri Lanka does not support market reform measures because in the existing politico-bureaucratic milieu the administrative and economic benefits of incomplete reform initiatives are enjoyed by a few. The aim of this paper is to explore and analyse the extent to which the political culture of the country has influenced successful establishment and performance of an institutional framework to implement the privatization programme in Sri Lanka. Secondary data have been extensively used in this paper to interpret, analyse and strengthen the arguments. Findings of this study suggest that reforms in developing countries should take a selective approach with careful attention to the country specific socio–political conditions and devise reform measures accordingly