Economy
With an economy worth $80.591 billion (2015) ($233.637 billion PPP estimate), and a per capita GDP of about $11,068.996 (PPP), Sri Lanka has mostly had strong growth rates in recent years. The Sri Lankan economy has seen robust annual growth at 6.4 percent over the course of 2003 to 2012, well above its regional peers. In GDP per capita terms, it is ahead of other countries in the South Asian region. Since the end of the three-decade civil conflict, Sri Lanka is now focusing on long-term strategic and structural development challenges as it strives to transition to an upper middle income country.
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.
Sri Lanka has met the Millennium Development Goal (MDG) target of halving extreme poverty and is on track to meet most of the other MDGs, outperforming other South Asian countries. Sri Lanka experienced a big decline in poverty between 2002 and 2009 – from 23 percent to 9 percent of the population. Despite this pockets of poverty continue to exist. An estimated 9 percent of Sri Lankans who are no longer classified as poor live within 20 percent of the poverty line and are, thus, vulnerable to shocks which could cause them to fall back into poverty.
Sri Lanka has one of the lowest tax-to-GDP ratios in the world and creating jobs for the bottom 40% has become a challenge. Sri Lanka also faces a challenges in Social inclusion, Governance and sustainability.
According to Government policies and economic reforms stated by Prime Minister and Minister of National Policy and economic affairs Ranil Wickremesinghe, Sri Lanka plans to create a knowledge based social market economy and an export-oriented economy as well as the Western Region Megapolis a Megapolis in the western province to promote economic growth. Creation of several business and technology development areas specialized in various sectors island wide as well as tourism zones in a planned manner is also being planned. The Government is also planning on regaining GSP+ trade concessions as well as joining the Trans-Pacific Partnership (TPP).
The Sri Lankan government has recently developed a number of ambitious goals for economic development, including achievement of the overall GDP rate of more than 8%.
Analysts believe that the constitutional reforms aimed at strengthening democratic structures and organs of the Government for accountability and the fight against corruption and the application of open foreign and economic policies with all countries will contribute to the country's stability and economic growth significantly.
There are broad prospects for the development of economic cooperation between the State of Qatar and the Republic of Sri Lanka, by virtue of its strategic location in the Indian Ocean, its foreign policy on the regional and international levels, its liberal economic policy, its membership in the international forums, its security cooperation with the neighboring countries, its combat against maritime piracy and smuggling of weapons & drugs and human trafficking and its fight against terrorism.
GDP (purchasing power parity)
- $223 billion (2015 est.)
- $212 billion (2014 est.)
- $203 billion (2013 est.)
Note: data are in 2015 US dollars
Country comparison to the world: 63
GDP (official exchange rate)
- $82.1 billion (2015 est.)
- GDP - real growth rate:
- 5.2% (2015 est.)
- 4.5% (2014 est.)
- 3.4% (2013 est.)
Country comparison to the world: 46
GDP - per capita (PPP)
- $10,600 (2015 est.)
- $10,100 (2014 est.)
- $9,700 (2013 est.)
Note: data are in 2015 US dollars
Country comparison to the world: 135
Gross national saving
- 27.6% of GDP (2015 est.)
- 29.5% of GDP (2014 est.)
- 29.8% of GDP (2013 est.)
Country comparison to the world: 48
GDP - composition, by end use
- Household consumption: 68.6%
- Government consumption: 8.8%
- Investment in fixed capital: 26.2%
- Investment in inventories: 3.9%
- Exports of goods and services: 20.5%
- Imports of goods and services: -28% (2015 est.)
GDP - composition, by sector of origin
- Agriculture: 8.7%
- Industry: 30.7%
- Services: 60.6% (2015 est.)
Agriculture - products
Rice, sugarcane, grains, pulses, oilseed, spices, vegetables, fruit, tea, rubber, coconuts; milk, eggs, hides, beef; fish.
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.
Industrial production growth rate
Country comparison to the world: 76
Labor force
- 8.928 million (2015 est.)
Country comparison to the world: 56
Labor force - by occupation
- Agriculture: 28.4%
- Industry: 25.7%
Services: 45.9% (30 Jun 2015)
Unemployment rate
- 4.7% (2015 est.)
- 4.3% (2014 est.)
Country comparison to the world: 48
Population below poverty line
Household income or consumption by percentage share:
Lowest 10%: 1.6%
Highest 10%: 39.5% (2009)
Distribution of family income - Gini index:
49 (2010)
46 (1995)
Country comparison to the world: 22
Budget
Revenues: $10.75 billion
Expenditures: $16.95 billion (2015 est.)
Taxes and other revenues
13.1% of GDP (2015 est.)
Country comparison to the world: 205
Budget surplus (+) or deficit (-):
-7.5% of GDP (2015 est.)
Country comparison to the world: 195
Public debt
- 76% of GDP (2015 est.)
- 70.7% of GDP (2014 est.)
Note: covers central Government debt, and excludes debt instruments directly owned by government entities other than the treasury (e.g. commercial bank borrowings of a government corporation); the data includes treasury debt held by foreign entities as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement; sub-national entities are usually not permitted to sell debt instruments.
Country comparison to the world: 34
Fiscal year
Calendar year
Inflation rate (consumer prices):
- 0.9% (2015 est.)
- 3.3% (2014 est.)
Country comparison to the world: 82
Central bank discount rate
- 6% (31 December 2015)
- 6.5% (31 December 2013)
Country comparison to the world: 68
Commercial bank prime lending rate
- 6.96% (31 December 2015 est.)
- 7.84% (31 December 2014 est.)
Country comparison to the world: 119
Stock of narrow money
- $4.963 billion (31 December 2015 est.)
- $4.671 billion (31 December 2014 est.)
Country comparison to the world: 99
Stock of broad money
- $26.79 billion (31 December 2015 est.)
- $25.95 billion (31 December 2014 est.)
Country comparison to the world: 79
Stock of domestic credit
- $39.22 billion (31 December 2015 est.)
- $33.79 billion (31 December 2014 est.)
Country comparison to the world: 70
Market value of publicly traded shares
- $18.48 billion (31 December 2015 est.)
- $17.05 billion (31 December 2014 est.)
- $19.44 billion (31 December 2013 est.)
Country comparison to the world: 65
Current account balance
- -$1.681 billion (2015 est.)
- -$2.018 billion (2014 est.)
country comparison to the world: 147
Exports
- $10.5 billion (2015 est.)
- $11.13 billion (2014 est.)
Country comparison to the world: 87
Exports - commodities
Textiles and apparel, tea and spices; rubber manufactures; precious stones; coconut products, fish.
Exports - partners
US 26%, UK 9%, India 7.2%, Germany 4.3% (2015)
Imports
- $18.93 billion (2015 est.)
- $19.42 billion (2014 est.)
Country comparison to the world: 76
Imports - commodities
Petroleum, textiles, machinery and transportation equipment, building materials, mineral products, foodstuffs.
Imports - partners
India 24.6%, China 20.6%, UAE 7.2%, Singapore 5.9%, Japan 5.7% (2015)
Reserves of foreign exchange and gold
- $7.303 billion (31 December 2015 est.)
- $8.209 billion (31 December 2014 est.)
Country comparison to the world: 85
Debt - external
- $45.47 billion (31 December 2015 est.)
- $43.61 billion (31 December 2014 est.)
Country comparison to the world: 64
Stock of direct foreign investment - at home:
$NA
Stock of direct foreign investment - abroad:
$NA
Exchange rates
Sri Lankan rupees (LKR) per US dollar –
135.86 (2015 est.)
130.57 (2014 est.)
130.57 (2013 est.)
127.6 (2012 est.)
110.57 (2011 est.)
Investment in Sri Lanka
Sri Lanka enjoys a safe and stable investment climate, especially after the end of civil war in 2009 which suffered by this Island for nearly three decades. This country has a great opportunity to attract more foreign direct investments in the light of prevailing stability and peace, its outstanding geographical location, its beautiful natural landscape, its close proximity of economically important countries, such as India, and the availability of educated workforce & natural materials.
With the positive investment climate and the availability of relatively open financial system, soft monetary policy, and world-class local companies, Sri Lanka has much potential for the significant economic progress in the coming years.
There is no doubt that Sri Lanka is a fertile ground for foreign investment, especially in tourism and infrastructure development sectors. The Sri Lankan Government is seeking lots of foreign direct investments during these periods that would contribute to the significant growth of Sri Lankan economy.
Key sectors of investment
- Tourism, leisure and entertainment projects.
- Infrastructure development projects.
- Education.
- Telecommunications.
- Garment Industry.
- Agriculture.