This report presents the findings, conclusions, and recommendations arising from an assessment of economic growth and conflict sponsored by USAID/Sri Lanka in October and November 2006.

The goal of the assessment was to develop recommendations for a robust yet conflict-sensitive approach to economic growth programming. The assessment team carried out research and fact finding in Sri Lanka and Washington, DC, and conducted more than 75 interviews with private sector, NGO, government and civil society representatives in cities and towns across Sri Lanka, including Colombo, Kurunegala, Kandy, Moneragala, Pottuvil, Hambantota, Matara, Galle, Vanatha Villu, Mahavilachchiya, Thantrimale, Anuradhapura, and Trincomalee.

The report first analyzes the current economic and conflict situation, then provides recommendations, including recommendations regarding potential program areas, implementation approaches, scenarios, and linkages across the USAID portfolio.