The impact of "Mercantilism and "Capitalism" on theEconomy of Sri Lanka
“Mercantilism is economic nationalism for the purpose of building awealthy and powerful state. The term “mercantile system” is used todescribe the system of political economy that sought to enrich thecountry by restraining imports and encouraging exports”
. This systemdominated Western European economic thought and policies from thesixteenth to the late eighteenth centuries. The goal of these policies was,supposedly, to achieve a “favourable” balance of trade that would bringgold and silver into the country and also to maintain domesticemployment.With the balance of trade shifting from multinational corporations to largeemerging markets — such as China and India — some nations have beentempted to turn to unfair practices to gain a trade advantage. Thesemercantilist practices are taking over knowledge- and technology-basedindustries.“
Capitalism is an economic and social system in which capital, the non-labour factors of production (also known as the means of production), is privately controlled; labour, goods and capital are traded in markets; and profits distributed to owners or invested in technologies and industries.Capitalist societies encourage competition and personal profit”
.Historically until Portuguese conquered the maritime areas of the countryin 1505, there had been three Kingdoms, which were the Kotte Kingdom inthe south – west, the Jaffna Kingdom in the north and the KandyanKingdom in the central highlands. The first two fell victims to foreignconquest by the Portuguese in 1505 and later by the Dutch in 1656 andthe British in 1796.
1.Allen, William R. “Mercantilism.” In John Eatwell, Murray Milgate and PeterNewman, eds.,
The New Palgrave: A Dictionary of Economics.
Vol. 3. London:Macmillan, 1987. P. 445-4482.Bacher, Christian (2007)
Capitalism, Ethics and the Paradoxon of Self-exploitation
Grin Verlag. p. 2