Open warfare between the government and the Liberation Tigers of Tamil Eelam broke out in mid-year. The two sides met twice in Geneva but failed to resolve their differences. Disagreements within the ruling coalition on how to resolve this conflict resulted in a realignment of political forces. The economy continued to grow, although troubling indicators emerged toward the end of 2006.
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Errata: In the September/October 2016 issue (volume 56 number 5, pages 836 and 849), there was a technical printing error in Figures 1b and 2 of the article by Ajay Raina that resulted in a loss of data on the graphs. This online article contains the restored figures in their original, correct state. The error is regretted.