Economic Overview
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.
Environmental Issues
Deforestation; soil erosion; wildlife populations threatened by poaching and urbanization; coastal degradation from mining activities and increased pollution; freshwater resources being polluted by industrial wastes and sewage runoff; waste disposal; air pollution in colombo
Government Type
Republic
Population
21,128,772
note: since the outbreak of hostilities between the government and armed tamil separatists in the mid-1980s, several hundred thousand tamil civilians have fled the island and more than 200,000 tamils have sought refuge in the west (july 2008 est.)
Location
Southern asia, island in the indian ocean, south of india
Area
Total: 65,610 sq km
land: 64,740 sq km
water: 870 sq km
Slightly larger than west virginia
Country Aliases
Conventional long form: democratic socialist republic of sri lanka
conventional short form: sri lanka
local long form: shri lamka prajatantrika samajaya di janarajaya/ilankai jananayaka choshalichak kutiyarachu
local short form: shri lamka/ilankai
former: serendib, ceylon
Capital
Name: colombo
geographic coordinates: 6 56 n, 79 51 e
time difference: utc+5.5 (10.5 hours ahead of washington, dc during standard time)
note: sri jayewardenepura kotte (legislative capital)
Military Service
18 years of age for voluntary military service (2007)
International Disputes
None
Sources: Central Intelligence Agency (CIA)