ABSTRACT
In Sri Lanka, the volume of foreign development assistance has always been large relative to the size of the economy. This chapter presents general discussion of Overseas Development Assistance (ODA) and conflict. It explains when, why, and how does ODA affect the structures and processes of peace and conflict in Sri Lanka. In the Sri Lankan case, as with all cases of identity-based conflict, the collective experiences of violence and the tit-for-tat of atrocity escalation across ethnic border lines, serve to forge a politicized sense of separate group identities. The chapter examines the peace and conflict impact of ODA at micro-, meso- and macro-levels. The 'Three Thousand House Project' on the east coast of Sri Lanka provides an insightful micro-level example of complex inter-connections between developmental interventions and the dynamics of peace and conflict. Finally, the chapter considers the question of whether ODA subsidizes military expenditures and militarization in Sri Lanka.
