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Sri Lanka 50 Rupees Currency Sri Lankan rupee (LKR) Calendar year SAFTA, WTO
Statistics GDP GDP growth GDP per capita GDP by sector $53,241 billion (2010 IMF est.) 8.2% (2010)/ 9.5% (2011 est.) $5,300 (2010 est.) agriculture: 12.8%; industry: 29.2%; services: 58% (2009 est.) Inflation (CPI) Population below poverty line Gini index 49 (2007) 3.4% (2009 est.) 7.6% (2010 est.)
Labour force
8.1 million note: excludes northern and eastern provinces (2009 est.)
agriculture: 32.7%; industry: 26.3%; services: 41% (December 2008 est.) 3.4% (12 month moving average as of December 2009) [1]
Main industries
processing of rubber, tea, coconuts, tobacco and other agricultural commodities; telecommunications, insurance, banking; tourism, shipping; clothing, textiles; cement, petroleum refining, information technology services, construction
102nd[2]
External Exports Export goods $7 billion (2009 est.) textiles and apparel, tea and spices; diamonds, emeralds, rubies; coconut products, rubber manufactures, fish Main export partners United States 22.1%, United Kingdom 12.1%, Germany 5.2%, Belgium 4.9%, Italy 4.8%, India 4.5% (2008) Imports Import goods $9.6 billion (2009 est.) textile fabrics, mineral products, petroleum, foodstuffs, machinery and transportation equipment Main import partners India 18.9%, China 12.4%, Iran 7.7%, Singapore 7.5%, South Korea 4.8% (2008)
Public finances Public debt Revenues Expenses Economic aid Foreign reserves 82.9% of GDP (2009 est.) $6.224 billion (2009 est.) $9.801 billion (2009 est.) $808 million (2006) $5.2 billion (30 November 2009 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars
With an economy of $53,241 billion (2010 IMF estimate) ($104,124 billion PPP estimate), [3] and a per capita GDP of about $5,300 (PPP), Sri Lanka has mostly had strong growth rates in recent years. And is far ahead of its other core south Asian peers such as Bangladesh, India and Pakistan. The main economic sectors of the country are tourism, tea export, apparel, textile, rice production and other agricultural products. In addition to these economic sectors, overseas employment contributes highly in foreign exchange, most of them from the middle-east. Since becoming independent from Britain in February 1948, the economy of the country has been affected by natural disasters such as the 2004 Indian Ocean earthquake and a number of insurrections, such as the 1971, the 1987-89 and the 1983-2009 civil war. The parties which ruled the country after 1948 did not implement any national plan or policy on the economy, veering between left and right wing economic practices. The government during 1970-77 period applied pro-left economic policies and practices. Between 1977 and 1994 the country came under UNP rule and between 1994 and 2004 under SLFP rule. Both of these parties applied pro-right policies. In 2001, Sri Lanka faced bankruptcy, with debt reaching 101% of GDP. The impending currency crisis was averted after the country reached a hasty ceasefire agreement with the LTTE and brokered substantial foreign loans. After 2004 the UPFA government has concentrated on mass production of goods for domestic consumption such as rice, grain and other agricultural products.[4]
Contents
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1 Economic history 2 Labour 3 Macro-economic trend 4 Financial institutions 5 Economic infrastructure and resources o 5.1 Transportation and roads o 5.2 Energy 6 Economic sectors o 6.1 Tourism o 6.2 Tea industry o 6.3 Apparel and textile industry o 6.4 Agriculture 7 Global economic relations o 7.1 Credit Rating and Commercial Borrowing o 7.2 Foreign assistance 8 See also 9 References 10 External links
of a peace dividend were visible throughout the economySri Lanka has been able to reduce defense expenditures and begin to focus on getting its large, public sector debt under control. In addition, the economy has benefited from lower interest rates, a recovery in domestic demand, increased tourist arrivals, a revival of the stock exchange, and increased foreign direct investment (FDI). In 2002, economic growth bounced up to 4%, helped by strong service sector growth. Agriculture staged a partial recovery. At present Agriculture in Sri Lanka needs keen attention as it directed towards disastorus situation. Industrial sector growth, however, faltered for the second consecutive year due to weak demand and lower prices for Sri Lanka's exports. The government was able to exert fiscal control, and inflation trended down. Total FDI inflows during 2002 were about $246 million and are expected to exceed $300 million in 2003. The largest share of FDI has been in the services sector. Good progress was made under the Stand By Arrangement, which was resumed by the International Monetary Fund (IMF). These measures, together with peaceful conditions in the country, have helped restore investor confidence and created conditions for the government to embark on extensive economic and fiscal reforms and seek donor support for a poverty reduction and growth strategy. However, the resumption of the civil-war in 2005 led to a steep increase defence expenditures. The increased violence and lawlessness also prompted some donor countries to cut back on aid to the country.[3][4]. Sri Lanka has also accumulated a 9.2 % deficit and the central bank has not intervened since late 2006 to print more currency [5]. A sharp rise in world petroleum prices combined with fallout from the civil war has led to inflation hitting 20%. [6]
[edit] Labour
More than 20% of the 6.1 million-strong labor force, excluding the north and east, is unionized. Trade union membership is on the decline. There are more than 1,650 registered trade unions, many of which have 50 or fewer members, and 19 federations. Many unions have political affiliations. The Ceylon Workers Congress (CWC) and Lanka Jathika estate workers union are the two largest unions representing workers in the heavily unionized plantation sector. The president of the CWC also is Minister of Livestock Development and Estate Infrastructure. The CWC's agenda includes political issues. Some of the stronger and more influential trade unions include the Ceylon Mercantile Union, Sri Lanka Nidhahas Sevaka Sangamaya, Jathika Sevaka Sangayama, Ceylon Federation of Trade Unions, Ceylon Bank Employees Union, Union of Post and Telecommunication Officers, Conference of Public Sector Independent Trade Unions, and the JVP-aligned Inter-Company Trade Union. The unemployment rate has declined in recent years and hovers at 10%. The rate of unemployment among high school and college graduates, however, remains proportionally higher than the rate for less-educated workers. The government has embarked on educational reforms it hopes will lead to better preparation of students and fewer mismatches between graduates and jobs. In addition, it also has begun a youth corps program to provide employment skills to the unemployed.
27.20 Sri Lankan Rupees 40.06 Sri Lankan Rupees 51.25 Sri Lankan Rupees 77.00 Sri Lankan Rupees 100.52 Sri Lankan Rupees
For purchasing power parity comparisons, the US Dollar is exchanged at 113.4 Sri Lankan Rupees only. In 1977, Colombo abandoned statist economic policies and its import substitution trade policy for market-oriented policies and export-oriented trade. Sri Lanka's most dynamic industries now are food processing, textiles and apparel, food and beverages, telecommunications, and insurance and banking. By 1996 plantation crops made up only 20% of exports (compared with 93% in 1970), while textiles and garments accounted for 63%. GDP grew at an annual average rate of 5.5% throughout the 1990s until a drought and a deteriorating security situation lowered growth to 3.8% in 1996. The economy rebounded in 1997-98 with growth of 6.4% and 4.7% - but slowed to 3.7% in 1999. For the next round of reforms, the central bank of Sri Lanka recommends that Colombo expand market mechanisms in nonplantation agriculture, dismantle the government's monopoly on wheat imports, and promote more competition in the financial sector. A continuing cloud over the economy is the fighting between the Government of Sri Lanka and the LTTE, which has cost 65,000 lives in the past 15 years. Government provides employment for 13% of the work force and follows state enterprise oriented policies. Privataization of such enterprises has stopped and reversed, with several new state enterprises launched.
[edi E ergy
The energy poli y i governed by the Mini try of Power and Energy, while the production and retailing of electricity i carried out by the Ceylon Electricity Board. Energy in the country i mostly generated by hydro power stations in Central Province.[10][11] The Sri Lankan Government (GOSL) and many individual "green groups" in Sri Lanka have been focusing on eco-friendly solutions to energy development and the country is undergoing changes to enforces stricter environmental policies in industries, both publi and private. c
[edi E
[edit] Tourism
Unawatuna Beach, one of the finest tourist destination in southern coast. Main arti l Tourism in Sri Lanka
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i sectors
Tourism is one of the main industries in Sri Lanka. Major tourist attractions are focused around the islands famous beaches located in thesouthern and eastern (e.g. Pasi Kuda) parts of the country, ancient heritage sites located in the interior of the country and lush green [12][13] Also the precious stones such resorts located in the mountainous regions of the country. as rubies and sapphires frequently found in Ratnapura and its surrounding areas also a major tourist attraction in the country.[14] The visiting tourists in areas where precious stones are available can visit Adam's Peak, Sinharaja Forest Reserve, Udawalawe National Park and Kitulgala (place of "The Bridge on the River Kwai" was filmed) as well. The 2004 Indian Ocean Tsunami[15] and the past civil war have reduced the tourist arrivals, however the International media reports published about the improvements in industry of January 2008 by 0.6%,[16] March 2008 by 8.6%[17] when comparing to last year's (2007) figures.
Tea estate in central highlands. Main arti l T a industry of Sri Lanka The tea i dustry (operating under the Ministry of Public Estate Management and Development) is one of the main foreign exchange gaining industry in Sri Lanka also became the world's leading exporter in 1995 shared 23% of the total export higher thanKenya shared 22%. The central highlands of the country, low temperature climate throughout the year, annual rainfall and the level of humidity are more favorable geographical factors for production in high quality tea. The industry was introduced to the country in 1867 byJames Taylor, the British planter who arrived in 1852.[18] Recently, Sri Lanka has become one of the countries exporting fair trade tea to the UK and other countries. It is reckoned that such projects could reduce rural poverty.
[19] [20]
The apparel industry of the country which producing high quality ready made garments and the main exporters are USA and Europe. There are about 900 factories throughout country serves world's leading fashion designing companies like Victoria's Secret, Li Claiborne and Tommy Hilfiger.[21]
[edit] Agriculture
Main articles: Agriculture in Sri Lanka and Livestock in Sri Lanka The agricultural sector of the country which producing domestic consumption such as rice, coconut and grain also a part of the culture since 2500 years. The tea industry which existing since 1867 is not a part of this sector of agriculture, it is mainly focusing on export market rather than domestic use in the country.[22] Ganja or cannabis is mostly grown for the needs of Ayurveda, the indigenous medicine of Sri Lanka.