Closing the Divide - Issues When Developing a Bond Market: The Case of Sri Lanka

Since the Asian economic crisis of the late 1990s, many countries in the region are embarking on programs to develop their financial systems to minimise or prevent such an incident in the future. This paper looks at Sri Lanka as an example of an underdeveloped bond market and its progress to date in reducing the divide. Comparisons and advice can be sought from developed economies, however the implementation of a progressive financial structure is unique to a country's own environment. In this instance the civil conflict and lingering cultural idiosyncrasies are impediments to progress.