Economic Development In Sri Lanka

CHAPTER 1

INTRODUCTION

1.1 Background

Sri Lanka’s economy has undergone significant structural changes during the past three decades under the open economic policy introduced in late 1970. The traditional economy was changed into an export-import based economy.Open economy have new policies that encourage the high rates of economic growth through increasing industrial exports. The modern commercial development have considerably effect for changes in the land cover (use) patterns, local perceptions and livelihoods. (Senarathna Sellamuttu: 2011). For example agricultural lands are being converted as commercials land plots as a result of development of economic related activities, increasing population densities, and urban sprawl. Currently

Different stages of development characterized by different types of land use patterns. (Chen and Wang, 2004, Li and Wang, 2000).Expansion of buildup area most of the time happened due to the declined of cultivated land. Buildup land increase associated with rural population ratio , socio economic development level and ecological conditions. Especially population growth, rural housing development ,large scale investment and socioeconomic development are the most important factors effect to agricultural land use transition in the world. (Xu, 2004),

Land use changes reflected the particular socio-economic development of the people. (Grainger, 1995). There is relationship between cultural behavioral pattern of the people and their built environment .But however, monitoring the land use changes occurring in lands is critical to understand its socio cultural development concerns of the

I have recognized there is a trend of decreasing the primary labor engaged in cinnamon industry called “cinnamon peeler” who plays a major role in the production process of cinnamon. After talk with people those who involve in the industry in Karandeniya area, I have found that they are earning around a 40,000.00 minimum per month. Although they are not interested to continue this as an occupation due to the reason of socially related factors. Getting ignored by the society especially when in the situations of marriages it is considered as an inferior to marry a person, who involve in this industry. So I have recognized not only economic factors but also social factors effect to decide people behavior pattern within communities. Also one of main actor in this cinnamon industry is cinnamon smallholders. They play an important role in the cinnamon supply chain where considerable amount of production comes from small holder units less than 1 hectare of land in Karandeniya DS, although they are still not getting maximum benefits out cinnamon industry. Sri Lankan government provides a high weight of fund for improve the cinnamon industry giving subsidies such as fertilizer, loans ,new plantation methodologies, etc.. Although in this area cinnamon cultivation