Economy of Sri Lanka

Known as the Pearl of the Indian Ocean, Sri Lanka is a paradise island that is gifted with the bounties of nature. With terrains that are home to different climates, high and low grounds, the land is ideal for agriculture and other industries which provide indications of the country’s economic stability.

The government controls a country that follows a form of mixed economy, whereby capitalist and socialist vantages have been utilised to benefit the overall affect of the land. Being an agricultural country, Sri Lanka grows numerous crops but rice is considered its key product. Tea, coconut and rubber are the nation’s secondary exports with the tea industry being one of the island’s main export and foreign exchange earners.

Other crops include spices such as cinnamon, nutmeg, cardamom, pepper and cloves as well as the likes of cocoa. Furthermore due to Sri Lanka’s tropical climate, the island is home to a bountiful offering of fruits and vegetables.

Apart from agriculture and tea, other industries such as tourism, apparel and textiles have emerged as key factors in the growth of the economy.

The following includes information with regard to the economy of Sri Lanka as of the year 2008.

 

GDP (purchasing power parity)

$93.32 billion

GDP (official exchange rate)

$42.16 billion

GDP - real growth rate

5.4%

GDP - per capita (PPP)

$4,400

GDP - composition by sector

agriculture: 11.7%
industry: 29.9%
services: 58.4%

Labour force

7.511 million

Labor force - by occupation

Agriculture: 34.3%
Industry: 25.3%
Services: 40.4%

Industries

Processing of rubber
Tea
Coconuts
Tobacco
Other agricultural commodities
Telecommunications
Insurance
Banking
Clothing
Textiles
Cement
Petroleum refining

Growth Rates of Major Sectors

Agriculture: 12.4%
Industry:5.6%
Services: 5.5%

Exports

$9.132 billion f.o.b.

Exports - commodities

Textiles and apparel
Tea and spices
Diamonds
Emeralds
Rubies
Coconut products
Rubber manufactures
Fish

Exports – partners

US 25.5%
UK 13.2%
India 6.7%
Germany 5.7%
Italy 5.1%

Imports

$12.57 billion f.o.b.

Imports – commodities

Textile fabrics
Mineral products,
Petroleum
Foodstuffs
Machinery
Transportation equipment

Imports – partners

India 23.1%
Singapore 9.9%
China 8.2%
Iran 7.5%
Hong Kong 6.4%

Exchange rates

Sri Lankan rupees (LKR) per US dollar
108.14 (2008)
110.78 (2007)
103.99 (2006)
100.498 (2005)
101.194 (2004)

Source/Reference : Department of Census and Statistics, Sri Lanka; Central Bank of Sri Lanka

 
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