Sri Lanka has experienced a series of changes in its trade regime since attaining independence from British colonial rule in 1948. During the first decade after independence it continued with a liberal trade regime, until growing balance of payments problems induced a policy shift towards...

Terms of trade implications of diversification into manufactured exports in a traditional primary-exporting country are examined in the light of the Sri Lankan experience over the past two decades. The empirical analysis focuses on trends in both commodity and income terms of trade, employing a...