The United National Party under J.R. Jayewardene won the 1977 elections with a five-sixths majority and immediately began transforming Sri Lanka’s economy. Sri Lanka became the first South Asian country to liberalize its economy, departing from decades of socialist-oriented policies. Foreign banks were allowed to open branches, the Greater Colombo Economic Commission was established, imports were liberalized, price controls were removed, and generous tax incentives were announced to encourage foreign direct investment.
1977 AD
Economic Liberalization
The United National Party under J.R. Jayewardene won the 1977 elections with a five-sixths majority and immediately began transforming Sri Lanka's economy. Sri Lanka became the first South Asian country to liberalize its economy, departing from decades of socialist-oriented policies. Foreign banks were allowed to open branches, the Greater Colombo Economic Commission was established, imports were liberalized, price controls were removed, and generous tax incentives were announced to encourage foreign direct investment.