Sri Lanka is credited with being the pioneer of economic liberalization in South Asia. However, economic progress has been painfully slow and outcomes have fallen far below the country’s potential. This book examines the process of development and the implementation of reforms in Sri Lanka after the economic liberalization of 1977. The author shows that while part of the story lies in the conflict in the North East, there are a number of other factors that have impeded economic progress, thereby, designating it development under stress. The book describes the key features of the Sri Lankan socio-political and economic system that prevented the country from achieving higher levels of economic growth. It explains why the country could not match the economic achievements of South Korea and Malaysia – countries that had similar per capita levels to that of Sri Lanka in the 1950s. This volume is a must read for all those involved in the study of Sri Lanka, as well as for development economists, students, researchers, policy makers, social scientists and South Asia experts.