Sri Lanka

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Sri Lanka - In Short.

Overview of Sri Lanka

The first Sinhalese arrived in Sri Lanka late in the 6th century B.C., probably from northern India. Buddhism was introduced circa 250 B.C., and the first kingdoms developed at the cities of Anuradhapura (from circa 200 B.C. to circa A.D. 1000) and Polonnaruwa (from about 1070 to 1200). In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The Portuguese controlled the coastal areas of the island in the 16th century followed by the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was formally united under British rule by 1815. As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972. Prevailing tensions between the Sinhalese majority and Tamil separatists erupted into war in July 1983. Fighting between the government and Liberation Tigers of Tamil Eelam (LTTE) continued for over a quarter century. Although Norway brokered peace negotiations that led to a ceasefire in 2002, the fighting slowly resumed and was again in full force by 2006. The government defeated the LTTE in May 2009. During the post-conflict years under President Mahinda RAJAPAKSA, the government initiated infrastructure development projects, many of which were financed by loans from China. His regime faced significant allegations of human rights violations and a shrinking democratic space for civil society.  In 2015, a new coalition government headed by President Maithripala SIRISENA of the Sri Lanka Freedom Party and Prime Minister Ranil WICKREMESINGHE of the United National Party came to power with pledges to advance economic, governance, anti-corruption, reconciliation, justice, and accountability reforms. However, implementation of these reforms has been uneven. In October 2018, President SIRISENA attempted to oust Prime Minister WICKREMESINGHE, swearing in former President RAJAPAKSA as the new prime minister and issuing an order to dissolve the parliament and hold elections. This sparked a seven-week constitutional crisis that ended when the Supreme Court ruled SIRISENA’s actions unconstitutional, RAJAPAKSA resigned, and WICKREMESINGHE was reinstated. In November 2019, Gotabaya RAJAPAKSA won the presidential election and appointed his brother, Mahinda, prime minister.
Value
Country Full Name
Sri Lanka
Country Code
LKA
Region
South Asia
Income Group
Lower middle income
Currency Unit
GDP
80676681934
Population
21919000
Land Area
61864
Net National Income Per Capita
3314.912279
GDP per Capita (PPP)
13224.6135

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Sri Lanka - Economic

Economy of Sri Lanka

Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under the IMF program it began in 2016. The government’s high debt payments and bloated civil service, which have contributed to historically high budget deficits, remain a concern. Government debt is about 79% of GDP and remains among the highest of the emerging markets. In the coming years, Sri Lanka will need to balance its elevated debt repayment schedule with its need to maintain adequate foreign exchange reserves.In May 2016, Sri Lanka regained its preferential trade status under the European Union’s Generalized System of Preferences Plus, enabling many of its firms to export products, including its top export garments, tax free to the EU. In 2017, Parliament passed a new Inland Revenue Act in an effort to increase tax collection and broaden the tax base in response to recommendations made under its IMF program. In November 2017, the Financial Action Task Force on money laundering and terrorist financing listed Sri Lanka as non-compliant, but reported subsequently that Sri Lanka had made good progress in implementing an action plan to address deficiencies.Tourism has experienced strong growth in the years since the resolution of the government’s 26-year conflict with the Liberation Tigers of Tamil Eelam. In 2017, the government promulgated plans to transform the country into a knowledge-based, export-oriented Indian Ocean hub by 2025.

Unemployment Rate

Inflation Rate

Sri Lanka - GDP Composition

GDP Composiiton & Value Added of Sri Lanka

Last Updated: Jan, 2021, Updated For 2020.

Sri Lanka - GDP, Value Added

Demographics of Sri Lanka

the population is primarily concentrated within a broad wet zone in the southwest, urban centers along the eastern coast, and on the Jaffna Peninsula in the north
Geographic Location

Southern Asia, island in the Indian Ocean, south of India

Races

Sinhalese 74.9%, Sri Lankan Tamil 11.2%, Sri Lankan Moors 9.2%, Indian Tamil 4.2%, other 0.5% (2012 est.)

Languages

Sinhala (official and national language) 87%, Tamil (official and national language) 28.5%, English 23.8% (2012 est.)note: data represent main languages spoken by the population aged 10 years and older; shares sum to more than 100% because some respondents gave more than one answer on the census; English is commonly used in government and is referred to as the "link language" in the constitution

Religion

Buddhist (official) 70.2%, Hindu 12.6%, Muslim 9.7%, Roman Catholic 6.1%, other Christian 1.3%, other 0.05% (2012 est.)

Dependency & Expectancy of Sri Lanka

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Sri Lanka

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ABEDA, ADB, ARF, BIMSTEC, C, CD, CICA (observer), CP, FAO, G-11, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MINUSTAH, MONUSCO, NAM, OAS (observer), OPCW, PCA, SAARC, SACEP, SCO (dialogue member), UN, UNCTAD, UNESCO, UNIDO, UNIFIL, UNISFA, UNMISS, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Sri Lanka

Export of Sri Lanka

Import Destination

Export Destination