Economy Of Sri Lanka

Economy overview 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 sectors now are food processing, textiles and apparel, food and beverages, telecommunications, and insurance and banking. In 2003, plantation crops made up only 15% of exports (compared with 93% in 1970), while textiles and garments accounted for 63%. GDP grew at an average annual rate of 5.5% in the early 1990s until a drought and a deteriorating security situation lowered growth to 3.8% in 1996. The economy rebounded in 1997-2000 with average growth of 5.3%, but 2001 saw the first contraction in the country's history, -1.4%, due to a combination of power shortages, severe budgetary problems, the global slowdown, and continuing civil strife. Growth recovered to 4.0% in 2002 and 5.2% in 2003. About 800,000 Sri Lankans work abroad, 90% in the Middle East. They send home about $1 billion a year. The struggle by the Tamil Tigers of the north and east for a largely independent homeland continues to cast a shadow over the economy.
 
GDP purchasing power parity - $73.7 billion (2004 est.)
 
GDP - real growth rate 5.5% (2004 est.)
 
GDP - per capita purchasing power parity - $3,700 (2004 est.)
 
GDP - composition by sector
agriculture: 19.9%
industry: 26.3%
services: 53.8% (2004 est.)
 
Investment gross fixed 22.7% of GDP (2004 est.)
 
Population below poverty line 22% (1997 est.)
 
Household income or consumption by percentage share
lowest 10%: 3.5%
highest 10%: 28% (1995)
 
Distribution of family income - Gini index 34.4 (1995)
 
Inflation rate consumer prices 6.3% (2004 est.)
 
Labor force 7.17 million (2004 est.)
 
Labor force by occupation agriculture 38%, industry 17%, services 45% (1998 est.)
 
Unemployment rate 8.4% (2004 est.)
 
Budget
revenues: $3.229 billion
expenditures: $4.526 billion, including capital expenditures of NA (2004 est.)
 
Public debt 105.1% of GDP (2004 est.)
 
Agriculture products rice, sugarcane, grains, pulses, oilseed, spices, tea, rubber, coconuts; milk, eggs, hides, beef
 
Industries rubber processing, tea, coconuts, and other agricultural commodities; clothing, cement, petroleum refining, textiles, tobacco
 
Industrial production growth rate 5.8% (2004 est.)
 
Electricity production 6.36 billion kWh (2001)
 
Electricity production by source
fossil fuel: 51.7%
hydro: 48.3%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 5.915 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 75,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance $-278 million (2004 est.)
 
Exports $5.269 billion f.o.b. (2004 est.)
 
Exports commodities textiles and apparel, tea, diamonds, coconut products, petroleum products
 
Exports partners US 34.6%, UK 12.5%, India 4.8%, Germany 4.5% (2003)
 
Imports $6.626 billion f.o.b. (2003 est.)
 
Imports commodities textiles, mineral products, petroleum, foodstuffs, machinery and equipment
 
Imports partners India 16.1%, Hong Kong 8.4%, Singapore 7.8%, Japan 6.7%, China 4.9%, South Korea 4.2%, Taiwan 4.2%, UK 4.1%, Malaysia 4% (2003)
 
Reserves of foreign exchange gold $2.273 billion (2004 est.)
 
Debt external $10.52 billion (2004 est.)
 
Economic aid recipient $577 million (1998)
 
Currency Sri Lankan rupee (LKR)
 
Currency code LKR
 
Exchange rates Sri Lankan rupees per US dollar - 96.521 (2003), 95.6621 (2002), 89.383 (2001), 77.0051 (2000), 70.6354 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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