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Economy of Sri Lanka

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Economy of Sri Lanka. With an economy worth $64 billion (2012 IMF estimate) ($170 billion PPP estimate),[1] and a per capita GDP of about $7900 (PPP), Sri Lanka has mostly had strong growth rates in recent years.

Economy of Sri Lanka

In GDP per capita terms, it is ahead of other countries in the South Asian region. 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.

Economic history[edit] Sri Lanka began to shift away from a socialist orientation in 1977. The Mahinda Rajapakse government halted the privatization process and launched several new companies. Following the quelling of the JVP insurrection, increased privatization, economic reform, and a stress on export-oriented growth helped improve the economic performance, increasing GDP growth to 7% in 1993. Macro-economic trend[edit] Economy of Sri Lanka. File:Sri Lanka Export Treemap.png. Agriculture in Sri Lanka. Aerial view of the Southern Province showing the land use patterns of the coastal belt. farming Rice cultivation in Sri Lanka[edit] Rice is the single most important crop occupying 34 percent (0.77 /million ha) of the total cultivated area in Sri Lanka.

Agriculture in Sri Lanka

On average 560,000 ha are cultivated during maha and 310,000 ha during yala making the average annual extent sown with rice to about 870,000 ha. About 1.8 million farm families are engaged in paddy cultivation island-wide. It is projected that the demand for rice will increase at 1.1% per year and to meet this the rice production should grow at the rate of 2.9% per year. The current cost of production of rough rice is Rs. 8.57 per kg. While the global demand for rice will increase at 1.95% the production will increase at 1.62% per annum making the tradable rice volume to be doubled in another 20 years time. Tea plantations[edit] Tea plantation at about 1800 m above sea level in Haputale, Hill Country Fruits and Vegetable[edit] Tea production in Sri Lanka. A tea plantation in Sri Lanka Tea plantation (Dambatenne estates) at about 1800 m above sea level in Haputale, Hill Country Tea production is one of the main sources of foreign exchange for Sri Lanka (formerly called Ceylon), and accounts for 2% of GDP, generating roughly $700 million annually to the economy of Sri Lanka.

Tea production in Sri Lanka

It employs, directly or indirectly over 1 million people, and in 1995 directly employed 215,338 on tea plantations and estates. Sri Lanka is the world's fourth largest producer of tea. In 1995, it was the world's leading exporter of tea, (rather than producer) with 23% of the total world export, but it has since been surpassed by Kenya. History[edit] Pre-tea era[edit] Cinnamon was the first crop to receive government sponsorship in Ceylon, while the island was under Dutch control.[8] During the administration of Dutch governor Iman Willem Falck, cinnamon plantations were planted in Colombo, Maradana, and Cinnamon Gardens in 1769. Tourism in Sri Lanka. The explorer Marco Polo of the 12th century wrote that Sri Lanka is the finest island in the whole world.

Tourism in Sri Lanka

For centuries it had been a tourism destination, particularly for European travellers. Recently, the Sri Lankan Civil War that spanned over 25 years and ended in 2009 has had a negative impact on tourism and the growth of the industry stagnated, however following this era a resurgence in Sri Lanka as a tourist destination has been evident. In 2012, post office worldwide holiday costs barometer named Sri Lanka as the best valued destination for holidays.[1] Value Proposition[edit] Transport in Sri Lanka. An inter-city train waiting at a station Transportation in Sri Lanka is based mainly on the road network which is centered on Sri Lanka's capital, Colombo.

Transport in Sri Lanka

There is also a railway network, but it is largely a legacy of British colonial rule and today only handles a small fraction of the country's transport needs. There are navigable waterways, harbours and two international airports located in Katunayake, 22 miles north of Colombo and in Hambantota. The highways and roadways around the country are in very good condition and are being upgraded. Railway network[edit] Commuter train in Colombo (Class S10 DMU) Map showing the rail network in Sri Lanka. Rail Transport in Sri Lanka consists of a heavy-rail intercity network connecting major population centres and commuter rail serving Colombo commuter traffic. Most of the railways were developed during the British colonial period, with the first line from Colombo to Kandy opening on 26 April 1867.