When
examining the economy in the country it was dramatically increased. After the
war, like other provinces the northern and eastern provinces also actively
contributed their part for the economy of the country. A good example for this
was there was an amazing growth in fishing industry during this period. Not only
in fishing industry but also a distinguished growth in other industries is also
noticeable within this particular period. The main reason behind this economic
growth was becoming northern and eastern habitant`s lives better and expansion
and opening up of new job markets and opportunities with the end of suffocating
terrorism. Despite the guns, rifles and war young generation started to expose
in to the world with new aspirations in their lives. And also day by day the
job demand of young people changed or moved around different new fields and
investment in those particular fields catered all those new aspirations. In
another way opening up the market for new and good paying jobs increased the
household income and strengthened the government in power.

Aforesaid
trend in the economic process was existed not only in northern and eastern
provinces of Sri Lanka, but also it was prevailed over the whole country. This
was a result of free movement of people and free movement of goods which
resulted with the peace in the country. With this Sri Lankan citizen was able
to carry on their livelihood freely without any hindrances. Moreover both local
and foreign investments started to flow in to the country in large shares. The
government by that time expected a growth rate target of 8% in Sri Lanka. In
order to reach this level of growth rate Sri Lanka needed about 35% investment
and also it had to be as a share of Gross Domestic Production (GDP). Generally
investment needs of any country are most of the times bounds by the available
domestic savings and in Sri Lanka this was very low like -17%. Therefore there
was a demand in the country for more investments. Therefore the respective
government encouraged foreign investments in the country and provided necessary
facilities with the process. Even there was an awakening in private sector of
the country with the growing economy of Sri Lanka than any instance.

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This
becomes a golden opportunity for India and china to achieve their economic
interests over Sri Lanka and both countries competitively elaborated their
capabilities in Sri Lanka. 

 Meanwhile Sri Lanka attempted to achieve
economic interests by adapting some neo liberal policies in to their economic
reforms. And also the Government took necessary measures to reduce and to
completely substitute the welfare fees of certain fields like health, education
and social welfare. The former Indian High Commissioner of Sri Lanka, Ashok K.
Kantha, once stated that with the end of the war in 2009, it is a good time to
enhance the bilateral economic relations between two countries gaining mutual
satisfaction and productive engagement. Although such Indian involvements in
economic factor is comparatively lower than China`s it is clear that behind
those involvements there are political aspirations. The reason for this is most
of the Indian government projects are in Northern part of Sri Lanka. 

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