Tuesday Aug 26, 2025
Tuesday Aug 26, 2025
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The Eastern, North Central, and Northern Provinces, with a historical presence of handloom and garment sectors, could be linked to the textile clusters of Tamil Nadu
The geographical proximity and historical ties between Northern, North Central, and Eastern Sri Lanka and Tamil Nadu state present an untapped opportunity for mutually beneficial economic cooperation. However, these possibilities remain untapped
By Thavarasa Sujanthini, Sivanesan Mathusha, Loganathan Sihanika, Suveedda Piratheepan, Neruja Narenthiran, Mary Delcia Antony Christian, Kamalakumari Karunanithy, and Muttukrishna Sarvananthan
Introduction
The Department of Economics at the University of Jaffna (Econ @ JU), located in Thirunelvely, Northern Province, Sri Lanka (https://www.jfn.ac.lk/), is pleased to initiate an academic collaboration with the Madras Institute of Development Studies (MIDS https://mids.ac.in/), and the Madras School of Economics (MSE https://www.mse.ac.in/), Chennai, Tamil Nadu, India. As part of this collaboration, an inaugural Guest Lecture and a Panel Discussion entitled The Development Surge in Peninsula India: Lessons for Sri Lanka are scheduled to be held on 28 August (Thursday) and 29th (Friday), 2025, respectively, at the University of Jaffna.
The main resource person for this inaugural Guest Lecture and Panel Discussion will be Dr. Manimegalai Vijayabaskar from MIDS (https://www.mids.ac.in/baskarv/).1 His scholarly credentials can be accessed on Google Scholar at https://scholar.google.com/citations?user=FGEGPjcAAAAJ&hl=en&oi=ao. For the Panel Discussion to be held on Friday 29 August 2025, panellists will be drawn from the Departments of Economics at several universities within the lagging regions and beyond, and from the Faculties of Arts and Management Studies and Commerce at the University of Jaffna.
This event aims to foster academic dialogue and regional economic cooperation between North Central (NCP), Northern (NP), and Eastern Provinces (EP) of Sri Lanka and Southern Indian states, drawing on the successful development trajectory of Tamil Nadu and its relevance to the underperforming provinces in Sri Lanka.
Background and rationale
Historical and archaeological evidence suggests that during the precolonial period, particularly in the Anuradhapura–Polonnaruwa era, the Eastern, North Central, and Northern Provinces of Sri Lanka experienced a period of remarkable economic prosperity, supported by expansive trade networks with southern India and the wider Indian Ocean world (Indrapala, 2013). According to both epigraphic records and historical chronicles, successive Chola invasions disrupted this trajectory, compelling the relocation of political authority from Anuradhapura–Polonnaruwa to the central highlands (Codrington, 1994). This transition facilitated the ascendancy of the Kandyan Kingdom and precipitated a protracted economic decline in these provinces (i.e. EP, NCP, & NP), the structural consequences of which remain discernible to the present day (Spencer, 1990; Gunawardana, 1995).2
In contemporary Sri Lanka, despite post-war reconstruction efforts and regional development plans3, the Northern, North Central, and Eastern Provinces of Sri Lanka—comprising the districts of Jaffna, Kilinochchi, Mannar, Mullaitivu, Vavuniya, Anuradhapura, Polonnaruwa, Ampara, Batticaloa, and Trincomalee—remain among the least developed regions in the country. These provinces consistently report the highest poverty and unemployment rates, and the lowest rankings on the Human Development Index (HDI) in comparison to the other seven provinces of Sri Lanka.4
In stark contrast, the state of Tamil Nadu in Southern India has emerged as an economic powerhouse. It is currently the second most industrialised state in India, following Maharashtra5, and has become the automobile manufacturing hub of the country. Major multinational firms from the United States, Germany, Japan, France, and South Korea have established production facilities there, earning Tamil Nadu the moniker “Detroit of India.”6
The Gross State Domestic Product (GSDP) of Tamil Nadu is projected to reach $ 420 billion in the fiscal year 2025–2026,7 making it the second-largest subnational economy in India after Maharashtra ($ 526 billion)8. Tamil Nadu contributes approximately 10% to India’s national GDP, which is projected to reach $ 4,000 billion (4 trillion)9 in 2025-2026. Notably, Tamil Nadu’s economy (population was almost 77 million in 2024), in USD terms, is comparable to advanced economies like Denmark (population was almost 6 million in 2024) and Norway (population was almost 5.6 million in 2024).
In contrast, according to the latest available data, in 2022, the Northern Province contributed just 4.1%, North Central Province 4.9%, and the Eastern Province 5.1% to the national economy of Sri Lanka.10
While Tamil Nadu’s population (almost 77 million) was more than three times that of Sri Lanka’s population (23 million) in 2024, its economy was over four times larger than that of Sri Lanka, which stood at around $ 100 billion in 2024.
Objectives of the collaboration
The proposed Guest Lecture and Panel Discussion seek to:
Opportunities for Sri Lanka’s lagging regions
The geographical proximity and historical ties between Northern, North Central, and Eastern Sri Lanka and Tamil Nadu state present an untapped opportunity for mutually beneficial economic cooperation. However, these possibilities remain untapped. Specific areas of opportunity include:
a) Industrial supply chain integration
nThe automobile manufacturing ecosystem in Tamil Nadu offers potential for component outsourcing or subcontracting to SMEs and entrepreneurs in Northern, North Central, and Eastern Sri Lanka.
nWith investment in skills development and infrastructure, regions like Jaffna, Vanni (Kilinochchi, Mannar, Mullaithivu, and Vavuniya districts), Anuradhapura, Polannaruwa, Trincomalee, Batticaloa, and Ampara could serve as auxiliary suppliers for automotive parts, electronics, rubber-based components, and specialised tools.
b) Textile and garment sector linkages
nThe Eastern, North Central, and Northern Provinces, with a historical presence of handloom and garment sectors, could be linked to the textile clusters of Tamil Nadu.
nOpportunities exist for co-production, contract manufacturing, and shared logistics hubs, particularly targeting export markets via Indian trade routes.
c) Information technology and digital services
nThe booming IT sector in Tamil Nadu, especially in Chennai and Coimbatore, opens avenues for remote service partnerships.
nWith improved connectivity and investment in digital literacy, Sri Lanka’s Northern, North Central, and Eastern regions could develop satellite service centres or outsourcing hubs for software testing, business process outsourcing (BPO), and IT-enabled services (ITES).
d) Knowledge economy and academic mobility
nThe proposed collaboration can serve as a springboard for future student and faculty exchange programs, joint research projects, and policy dialogues.
nTopics of mutual interest include regional disparities, post-conflict economic recovery, decentralised development, and cross-border trade facilitation.
Expected outcomes
Conclusion
This collaboration between the University of Jaffna, the Madras Institute of Development Studies, and the Madras School of Economics represents a timely and strategic engagement. By fostering academic exchange and exploring cross-border economic linkages, this initiative aims to contribute meaningfully to the inclusive and sustainable development of Sri Lanka’s most underserved regions.
The Department of Economics, University of Jaffna, is delighted to build on its inaugural Guest Lecture and Panel Discussion by welcoming scholars from MIDS and MSE. Together, we aim to spark an important conversation on regional cooperation, economic integration, and the promise of subnational development models. Plans are also underway to launch student exchange programs between economics students at the University of Jaffna and selected university colleges in Chennai.
Endnotes:
1The Consulate General of India in Jaffna has graciously secured sponsorship for the invitation of Dr. M. Vijayabaskar from MIDS to the University of Jaffna, which is gratefully acknowledged by the Department of Economics.
2https://ceylontoday.lk/2025/04/05/trade-and-commerce-in-ancient-anuradhapura-part-55/
https://sleconomynow.blogspot.com/2017/09/economic-policies-of-pre-colonial_25.html
3https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/Economic%20Development%20Framework%20NP-English.pdf
4Sarvananthan, Muttukrishna, 2016, Elusive Economic Peace Dividend: all that glitters is not gold, GeoJournal, 81(4), pp.571-596. https://rdcu.be/2s1n
5https://storify.com/reenadhiman/let-s-unveil-the-industrial-growth-ofchennai; http://www.mapsofindia.com/maps/tamilnadu/industry-map.html.
6http://www.livemint.com/Industry/nzgFbwcO2BgdW4x6dVBCCN/How-Jayalalithaa-made-Chennai-the-Detroit-of-India.html.
7https://www.ibef.org/states/tamil-nadu-presentation#:~:text=At%20current%20prices%2C%20Tamil%20Nadu%E2%80%99s%20gross%20state%20domestic,total%20installed%20power%20generation%20capacity%20of%2042.77%20GW.
8https://statisticstimes.com/economy/india/indian-states-gdp.php https://www.ibef.org/states/tamil-nadu-presentation#:~:text=At%20current%20prices%2C%20Tamil%20Nadu%E2%80%99s%20gross%20state%20domestic,total%20installed%20power%20generation%20capacity%20of%2042.77%20GW
9https://statisticstimes.com/economy/india/indian-states-gdp.php
10https://view.officeapps.live.com/op/view.aspx?src=
https%3A%2F%2Fwww.cbsl.gov.lk%2Fsites%2Fdefault%2Ffiles%2Fcbslweb_documents%2Fstatistics%2Fess%2Fess_2024_table1.11_e.xlsx&wdOrigin=
BROWSELINK
(The writers are attached to the Department of Economics, University of Jaffna.)
