Sri Lanka:
Economy

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Other pages in this profile of Sri Lanka:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition In 1977, Colombo abandoned statist economic policies and its import substitution trade policy for more market-oriented policies, export-oriented trade, and encouragement of foreign investment. Recent changes in government, however, have brought some policy reversals. Currently, the ruling Sri Lanka Freedom Party has a more statist economic approach, which seeks to reduce poverty by steering investment to disadvantaged areas, developing small and medium enterprises, promoting agriculture, and expanding the already enormous civil service. The government has halted privatizations. Although suffering a brutal civil war that began in 1983, Sri Lanka saw GDP growth average 4.5% in the last 10 years with the exception of a recession in 2001. In late December 2004, a major tsunami took about 31,000 lives, left more than 6,300 missing and 443,000 displaced, and destroyed an estimated $1.5 billion worth of property. Government spending and reconstruction drove growth to more than 7% in 2006 but reduced agriculture output probably slowed growth to about 6 percent in 2007. Government spending and loose monetary policy drove inflation to nearly 16% in 2007. Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, port construction, telecommunications, and insurance and banking. In 2006, plantation crops made up only about 15% of exports (compared with more than 90% in 1970), while textiles and garments accounted for more than 60%. About 800,000 Sri Lankans work abroad, 90% of them in the Middle East. They send home more than $1 billion a year. The struggle by the Tamil Tigers of the north and east for an independent homeland continues to cast a shadow over the economy.
GDP (purchasing power parity)	Definition - World rank and map $81.29 billion (2007 est.)
GDP (official exchange rate)	Definition $30.01 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 6.3% (2007 est.)
GDP - per capita	Definition - World rank and map $4,100 (2007 est.)
GDP - composition by sector	Definition agriculture: 16.5% industry: 26.9% services: 56.5% (2007 est.)
Labor force	Definition 7.67 million (2007 est.)
Labor force - by occupation	Definition agriculture: 34.3% industry: 25.3% services: 40.4% (30 June 2006 est.)
Unemployment rate	Definition - World rank and map 5.7% (2007 est.)
Population below poverty line	Definition 22% (2002 est.)
Household income or consumption by percentage share	Definition lowest 10%: 1.1% highest 10%: 39.7% (FY03/04)
Distribution of family income - Gini index	Definition - World rank and map 50 (FY03/04)
Inflation rate (consumer prices)	Definition - World rank and map 19.7% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 28.9% of GDP (2007 est.)
Budget	Definition revenues: $5.64 billion expenditures: $7.77 billion (2007 est.)
Public debt	Definition - World rank and map 83.9% of GDP (2007 est.)
Agriculture - products	Definition rice, sugarcane, grains, pulses, oilseed, spices, tea, rubber, coconuts; milk, eggs, hides, beef; fish
Industries	Definition processing of rubber, tea, coconuts, tobacco and other agricultural commodities; telecommunications, insurance, banking; clothing, textiles; cement, petroleum refining
Industrial production growth rate	Definition - World rank and map 7.4% (2007 est.)
Electricity - production	Definition - World rank and map 8.411 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 7.072 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 334.8 kWh (2005)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 0 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 84,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 4 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 691.5 bbl/day (2004)
Oil - imports	Definition - World rank and map 82,390 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 0 bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$1.369 billion (2007 est.)
Exports	Definition - World rank and map $8.139 billion f.o.b. (2007 est.)
Exports - commodities	Definition textiles and apparel, tea and spices; diamonds, emeralds, rubies; coconut products, rubber manufactures, fish
Exports - partners	Definition US 23.1%, UK 11.5%, India 10.1%, Belgium 4.7%, Germany 4.5%, Italy 4.1% (2006)
Imports	Definition - World rank and map $10.61 billion f.o.b. (2007 est.)
Imports - commodities	Definition textile fabrics, mineral products, petroleum, foodstuffs, machinery and transportation equipment
Imports - partners	Definition India 22%, China 11.9%, Singapore 7.2%, Iran 6.2% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $3.417 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $12.19 billion (31 December 2007 est.)
Stock of direct foreign investment - at home	Definition $NA
Stock of direct foreign investment - abroad	Definition $NA
Market value of publicly traded shares	Definition $7.769 billion (2006)
Economic aid - recipient	Definition $1.189 billion (2005)
Currency (code)	Definition Sri Lankan rupee (LKR)
Exchange rates	Definition Sri Lankan rupees per US dollar - 110.78 (2007), 103.99 (2006), 100.498 (2005), 101.194 (2004), 96.521 (2003)
Fiscal year	Definition calendar year

Sri Lanka: Economy

Sri Lanka:
Economy