Nation at a Glance - Sri Lanka

History

The first Sinhalese arrived in Sri Lanka late in the 6th century B.C., probably from northern India. Buddhism was introduced circa 250 B.C., and a great civilization developed at the cities of Anuradhapura (kingdom from circa 200 B.C. to circa A.D. 1000) and Polonnaruwa (from about 1070 to 1200). In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The Portuguese controlled the coastal areas of the island in the 16th century and the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was formally united under British rule by 1815. As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972. Tensions between the Sinhalese majority and Tamil separatists erupted into war in 1983. After two decades of fighting, the government and Liberation Tigers of Tamil Eelam (LTTE) formalized a cease-fire in February 2002 with Norway brokering peace negotiations. Violence between the LTTE and government forces intensified in 2006, but the government regained control of the Eastern Province in 2007 and by May 2009, the remnants of the LTTE had been defeated. Since the end of the conflict, the government has enacted an ambitious program of economic development projects, many of which are financed by loans from the Government of China. In addition to efforts at reconstructing its economy, the government has resettled more than 95% of those civilians displaced during the final phase of the conflict and released the vast majority of former LTTE combatants captured by Government Security Forces. At the same time, there has been little progress on more contentious and politically difficult issues such as reaching a political settlement with Tamil elected representatives and holding accountable those alleged to have been involved in human rights violations and other abuses during the conflict.

Location: Southern Asia, island in the Indian Ocean, south of India

Border Countries: 0 km

Total Area: 65,610 sq km Land: 64,630 sq km Water: 980 sq km

Climate: Tropical monsoon; northeast monsoon (December to March); southwest monsoon (June to October)

Terrain: Mostly low, flat to rolling plain; mountains in south-central interior

Natural resources: Limestone, graphite, mineral sands, gems, phosphates, clay, hydropower, arable land

Land use: Agricultural land: 43.5% arable land 20.7%; permanent crops 15.8%; permanent pasture 7% Forest: 29.4% Other: 27.1% (2011 est.)

Ethnic groups: Sinhalese 74.9%, Sri Lankan Tamil 11.2%, Sri Lankan Moors 9.2%, Indian Tamil 4.2%, Other 0.5% (2012 est.)

Languages: Sinhala (official and national language) 74%, Tamil (official and national language) 18%, Other 8%

Religions: Buddhist (official) 70.2%, Hindu 12.6%, Muslim 9.7%, Roman Catholic 6.1%, other Christian 1.3%, Other 0.05% (2012 est.)

Population: 22.235 million (July 2016 est.)

Literacy: 92.6%; Male: 93.6%; Female: 91.7% (2015 est.)

Administrative divisions: 9 provinces; Central, Eastern, North Central, Northern, North Western, Sabaragamuwa, Southern, Uva, Western

Economy: Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under the IMF program it began in 2016. The government's high debt payments and bloated civil service, which have contributed to historically high budget deficits, remain a concern. Government debt is about 79% of GDP and remains among the highest of the emerging markets. In the coming years, Sri Lanka will need to balance its elevated debt repayment schedule with its need to maintain adequate foreign exchange reserves. In May 2016, Sri Lanka regained its preferential trade status under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including its top export garments, tax free to the EU. In 2017, Parliament passed a new Inland Revenue Act in an effort to increase tax collection and broaden the tax base in response to recommendations made under its IMF program. In November 2017, the Financial Action Task Force on money laundering and terrorist financing listed Sri Lanka as non-compliant, but reported subsequently that Sri Lanka had made good progress in implementing an action plan to address deficiencies. Tourism has experienced strong growth in the years since the resolution of the government's 26-year conflict with the Liberation Tigers of Tamil Eelam. In 2017, the government promulgated plans to transform the country into a knowledge-based, export-oriented Indian Ocean hub by 2025.

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