The Role of co-operatives in neoliberal Sri Lanka: a case study

The co-operative movement of Sri Lanka is a historically embedded phenomenon. Since its emergence in the latter stage of the British colonial era of the country, the movement has been creating a unique value system in Sri Lanka’s political economy thus enabling ‘weaker sects’ of society to be ‘productive members’. Yet, once Sri Lanka opened up its economy in 1977, this social and economic role, the ‘double nature’, of co-operatives was exposed to an ambivalent situation. Against this backdrop, this article critically examines the role of the co-operative movement in ‘neoliberal Sri Lanka’. Based on the case study method, it analyses how primary co-operatives of the country operate in the free market conditions. The article shows that Sri Lankan co-operatives are continuously losing their momentum and strongholds in the market as they are struggling to cope with the challenges in the free market conditions. In conclusion, the article argues that Sri Lankan co-operative movement needs to transform itself into a ‘voluntary people's movement’, if it is to continue into the future