Economy of Sri Lanka

Topics: Sri Lanka, Monetary policy, Macroeconomics Pages: 22 (7859 words) Published: March 6, 2013
Economy of Sri Lanka
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Economy of Sri Lanka|

World Trade Center in Colombo|
Currency| Sri Lankan rupee (LKR)|
Fiscal year| Calendar year|
Trade organisations| SAFTA, WTO|
GDP| US$ 64 Billion (2012 IMF est.) / US$ 170 Billion PPP[1]| GDP growth| 7.2% (2012 est.)[2]|
GDP per capita| US$ 3200 (2012 est.) / US$ 7900 USD PPP[2]| GDP by sector| agriculture: 12.8%; industry: 29.2%; services: 58% (2009 est.)| Inflation (CPI)| 6.9% (2012 est.)[2]|
below poverty line| 4.3% (2011 est.)[2]|
Gini coefficient| 47 (2011)[3]|
Labour force| 8,416,655 (2009)[4]|
Labour force
by occupation| agriculture: 32.7%; industry: 26.3%; services: 41% (December 2008 est.)| Unemployment| 4.3% (2011)[2]|
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| Ease of Doing Business Rank| 81st[5]|

Exports| $10.89 billion (2011 est.)|
Export goods| textiles and apparel, pharmaceuticals, tea, 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| $20.02 billion (2011 est.)|

Import goods| 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)| FDI stock| US$1 Billion (2011)|

Gross external debt| $19.45 billion (31 December 2009 est.)| Public finances|
Public debt| 81% of GDP (2011 est.)|
Revenues| $8.495 billion (2011 est.)|
Expenses| $12.63 billion (2011 est.)|
Economic aid| $808 million (2006)|
Credit rating| Standard & Poor's:[6]
BB- (Domestic)
B+ (Foreign)
B+ (T&C Assessment)
Outlook: Stable[7]
Outlook: Stable
Outlook: Positive|
Foreign reserves| $7.2 billion (17 April 2011 est.) [8]|
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars|
With an economy worth $64 billion (2012 IMF estimate) ($170 billion PPP estimate),[1] and a per capita GDP of about $7900 (PPP), Sri Lanka has mostly had strong growth rates in recent years. In GDP per capita terms, it is ahead of other countries in the South Asian region. 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, 90% of expatriate Sri Lankans reside in 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.[9] Contents[hide] * 1 Economic history * 2 Macro-economic...
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