This paper examines the economic effects of milk powder imports on domestic milk industry and consumers' welfare. Domestic milk production fullfilled around 40% of the demand in 2016. The generalized inverse demand system model was employed. The result shows that a 10% increase in milk powder imports increases consumers' welfare by USD 20 million and fresh milk and local milk powder industry will suffer economic losses. Therefore, until domestic producers develop the capacity to compete with international competitors, government should provide subsidies, credit facilities and technical assistance to all dairy farmers, middlemen, milk collecting centers, dairy farmers associations and cooperatives involved in domestic dairy industry. Government should provide assistance and facilities to domestic fresh milk processors to promote fresh milk consumption by non-price competition strategy. Importers of milk products and local milk processors could use this finding to develop their business strategy.

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This study examines the impact of leasing on lessee's income, family expenditure and default rate in Jaffna District which was badly affected by the civil war from 1983 to 2009. This war has significantly affected the socioeconomic status of the people living in the area. Since the end of the war, the presence of the financial institutions has been increased significantly in the district. There are 39 financial institutions operating in Jaffna district and all of them have the function of leasing as their major operation. In general, service sector contributes 65% of the economy in Jaffna district. Transport service is also playing an important role in the economy of the district. Domestic tourism slowly emerges as a significant economic activity in this district. For this study, 331 leasing clients were randomly selected to collect data using pre tested questionnaire. The study has found that 72.8% of leasing facilities has been offered to transport sector and out of the leased facilities 39.9% were seized. Multiple regression models for lessee's income and family expenditure and probit model for default rate of leasing were developed to study effect of leasing on lessee's income, family expenditure and default rate. The results show that leasing has positive impact on income and family expenditure. On average, family expenditure increased by leasing is greater than the income increased by leasing because most of the lessees are economically marginalized. Therefore, there is higher possibility to get default but increase in leasing amount decrease the default rate. Leasing had greater positive income effect on self-employed clients using leasing in their own business. It was found that the leasing companies are charging very high interest rate and penalty on delayed installments. Leasing companies need to assess the client's potentials and repayment capacity before offering leasing facility. Leasing companies should provide more grace period when the clients are in trouble. It is recommended to offer more leasing facilities to other sectors such as fisheries, agriculture and industries.

Jaffna Peninsula of Sri Lanka depends on groundwater for drinking water. Supply of clean drinking water has become limited due to overuse of agrochemicals, widespread use of pit latrines, and seawater intrusion. The aim of this study is to estimate the willingness to pay for the attributes of water quality and supply. One hundred and twenty households were randomly selected in the study area. A choice modeling approach was employed. The result indicates that, on average, households' willingness to pay for the improvement of water quality is three times higher than their monthly payment. Households are willing to pay more for reduction in calcium than for reduction in nitrate and improvement of other attributes. The education level of households influences willingness to pay for the improvement of water quality more than the income level of households. There is high potential to finance for the improvement of the water quality from the households. Water supply and drainage board can afford to supply the drinking water at the WHO standard and charge price on a volumetric basis. The findings of this study would be useful for policymakers to set the appropriate price and policy to develop a sustainable project.

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This study estimates willingness to pay (WTP) for different sustainable ecosystem management measures in the Jaffna lagoon. For this study, 118 fishermen were randomly selected along the lagoon. Choice modelling approach was employed and a conditional logit model was developed. This study found that fishermen from village communities are willing to pay more for increasing the number of mangroves and improving tourist facilities. The availability of land for planting mangroves and improving tourist facilities and increasing income from other sources positively influence the fisherman’s WTP for sustainable ecosystem management. Establishing fishing harbour facilities, properly planned multi-storey housing units in town areas would increase fishermen’s support for planting mangroves and developing tourist spots. Increasing income from other sources and fishermen’s awareness on the impact of inappropriate fishing gears and enforcing mechanism would increase fishermen’s support to ban the inappropriate fishing gears. Based on this study, government authority could make appropriate policy for urban and village coastal lagoon ecosystem management.