Sri Lanka's globalisation and its policy challenges, according to Dr. Sarath Rajapatirana

SRI Lanka had been a beneficiary of the waves of globalisation that had struck it for thousands of years. It had been open to trade, investment, transfer of knowledge, and factor mobility without hindrance.

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The country's chronicle, Mahavamsa, talks about an incident that had happened in the 6th century BCE showing that the country had been visited by foreign ships laden with rice and other goods. According to the story, when Prince Vijaya landed in Thambapanni, the local princess Kuveni had hosted him and his retinue numbering 600 to a meal of rice and an assortment of gifts. According to Mahavamsa, rice for the meal and items for gifts had been procured from merchant ships that had been wreaked in the nearby seas. 1

Since the ancient kings had actively supported this wave of globalisation, there had not been any policy challenges for those who oversaw it. In fact, the kings had provided all the logistics to facilitate free trade and investment. During the time of the King Parakramabahu, I, when the country was subject to the highest degree of globalisation, the king had got his officials to learn foreign languages so that they could communicate in the language of the visiting merchants.2

When he was told by his Treasurer that the Treasury was empty, he had set up a special export processing zone called the Antharangadhura to export gems and other merchandise to earn foreign currency and build the Treasury.3

When King Arimaddana of Ramangna Desha which in modern days called Myanmar had increased the price of elephants which King Parakramabahu, I, had purchased for reexport from 100 silver coins to 1000 or even 2000 silver coins, the King had invaded Ramangna Desha and defeated the King Arimaddana to reestablish his trade rights there.4

Thus, globalisation was a part and parcel of the lives of Sri Lankans in the past. Hence, during that period, there was no shock delivered to the people and the country due to globalisation. As such, it did not throw any challenges to local policymakers.

Shocking experience of new globalisation wave