User:Deepthikarunanayake/sandbox

Performance of open economic policy After the establishment of the Free Capitalist Market Economy in Sri Lanka, it is important to investigate our position in the Global Economy. This is because the export-oriented liberalization policy was adopted to bring about a quantitative and qualitative change in the country's economy. The economic goal was to develop the country's economy within a short period. The economy was then adjusted to suit liberal economic policies. The free-market economic policy was accompanied by an export-oriented industrialization policy. The core of the market economy is entrepreneurship. The market structure helped to generate new businesses. A large number of new and innovative companies focused on innovation were the entrepreneurs who were the fuel. Entrepreneurs create a competitive environment. Creates new businesses When the open economic system is in place, all economic activities are based on the market. The basis of the open economy is to be competitive and thereby to increase profitability. Competitiveness in implementing the price mechanism also leads to increased profitability. As a result, local firms failed to meet the challenges of innovation and to identify new market opportunities. Due to a lack of motivation to properly absorb the driving forces of the free enterprise system, the domestic economy was crippled. This did not meet the objectives of the economy economic reforms carried out in the country were not met. Similarly, the free trade policy has been implemented to the detriment of the economy. It was not product development, but trade development. The result was a market failure. It is believed that the open economic system hinders the development of Sri Lanka, Another section suggests that it favors development. Developed countries are seen in the world today through the open economy. Examples of countries that have succeeded in this approach are Singapore, Malaysia, China and India. These countries did not succeed on the advice of the World Economic Advisers. He opened the economy to suit his country and put the market under some control of the state. But they are far ahead of Sri Lanka in trade and foreign investment than Sri Lanka, which has implemented a strict economic policy. Unlike India and China, Sri Lanka has widely liberated the economy to boost foreign investment. This shows that the benefits of the open economy are very limited but Sri Lanka's gains are very limited. The measures adopted by the developed countries were also affected. The currency was devalued on the advice of the IMF to reduce the balance of payments, but it did not yield favorable results. This is due to the nature of the country's export composition and the lack of mass production. Due to the openness in the country, the expected investment volume was not met and the domestic production was low. This is the case in Sri Lanka, while other countries in the world have increased foreign investment due to the open economy. These countries controlled the economy until the economy reached a certain level. Those countries did not open themselves to undue pressure on the domestic economy but did take a precautionary measure until they were able to withstand external pressures. This avoided the disadvantages of openness. East and Southeast Asian countries have moved away from the free open economic framework and embarked on a national plan with the participation of the public and private sectors in the development of a mixed economy. They improved the local economy by restricting imports and developing exports. The open market system of the country cannot be further eased or abolished. The reason is that in an open economy there are both advantages and disadvantages. Therefore, in the formulation of economic plans and policies, the open economic policy must be maintained in a manner that is conducive to the production economy. Exports must be developed using local resources is also necessary to restrict unnecessary imports and implement an open economic system so as not to harm the local economy. One of the weaknesses of the country's open economic policy was the implementation of proposals from international institutions and consultants. As a result, the domestic market is under pressure from foreign countries. Foreign companies took advantage of foreign investment. Foreign technology and management came to the country but it did not have a significant impact on the economic development of the country. The market crashed due to more private sector involvement than the public sector. Due to the inefficient use of state resources. As the private sector became the engine of the economy, competition increased, but there were also problems with profitability. The private sector failed to compete with the foreign sector. Both the public and private sectors were seeing two lanes. This is because the market economy is weakening rather than strengthening. The open economy of the country has brought great suffering to the common people. This made the people of the country even poorer. Under the direction of free enterprise, the national economy tried to integrate into the world economy, but its failure was severely affected by the country's economy. The economic consequences of this have leaked into the domestic economy. Since the economy of Sri Lanka by nature is an agricultural country, the economic sector has been weakened by the introduction of incompatible economic models. Sri Lanka implemented the market economy in a way that no other country in the world has implemented it. The economic programs of the country were implemented in a manner contrary to the open market economy. Sri Lanka's free-market economy is different from other countries. Sri Lanka does not have the means to develop the economy. Manufacturing industries should be developed to improve the country. There is no evidence that such a situation occurred after the economic liberalization that took place after 1977. The practice of the country is to earn profits by importing and selling foreign products. It is difficult to develop the country through such methods. It offers many incentives to attract foreign investors. It cannot be said that these investors are investing in the country with all the facilities and to improve the Sri Lankan economy. What these investors have done so far and will continue to do is to create technologically profitable industries. But the country needs to create manufacturing industries that will deliver lasting results that can achieve economic development. Even the Board of Investment of Sri Lanka has allowed foreign investment without any consideration of this. All goods required for the country are imported under the free trade system. Import of products manufactured in foreign countries without proper utilization of the resources required to produce them in the country. The market system is designed to consume them. This has resulted in harm to local producers. This caused local firms to suffer losses and bankruptcy or sale. Continuing this kind of economic environment, the country's development level went down. To allow it to evolve as we work in the open economy on our journey towards development is necessary to study the countries that have benefited and their performance and to manage the open economy to suit the local economy. It is important to revise the country's economic policies and plans to develop exports and take advantage of the open market by enhancing the productive economy.