The Institute of Policy Studies of Sri Lanka (IPS) has been publishing the State of the Economy report since 1992 with a complementary theme selected each year. The 2010 State of the Economy report is devoted to an assessment of the economic challenges of post-conflict growth and stability in Sri Lanka. The decades of conflict and marginalization have left the North and East as two of the poorest provinces in the country. The priority is not only to build up the socio-economic environment in the North and East comparable to the rest of the country, but to do so rapidly. The report discuses harnessing the rapid recovery of Sri Lanka’s post-conflict economy with a transformative process of economic reforms to be a promising outcome for sustained long term growth.