Can market contribute of the reduction of inequality and poverty in Sri Lanka?

Abstract

Many economists emphasize that economic growth is necessary to lift the county out of poverty. This growth occurs when market forces are allowed to determine the prices of different products on the market to stimulate productivity and innovation. Markets allow free entry and exit of economic agents. This facilitates market forces of supply and demand to determine prices. At this stage, resources are redistributed in society by an 'invisible hand' to meet the needs of the population. Even though, market is a best allocator of resources, government intervention is also important to regulate the economy. The government should have market friendly approach which stimulates economic growth and thereby reducing poverty and inequality.