Sri Lanka
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About Sri Lanka
Sri Lanka is an island nation located in the Indian Ocean south of India, featuring mostly low, flat to rolling plains with mountains in the south-central interior. The country experiences a tropical monsoon climate with northeast monsoons from December to March and southwest monsoons from June to October. Colombo serves as the capital, and Sri Lanka has a population of approximately 22.05 million people who primarily speak Sinhala, Tamil, and English.
Sri Lanka’s economy experienced a severe contraction in 2022-23 marked by increased poverty, significant inflation, and a sovereign default that led to a two-year IMF debt relief program. Key industries include processing of rubber, tea, coconuts, and tobacco, along with tourism, clothing and textiles, and mining. The country is endowed with natural resources such as limestone, graphite, mineral sands, gems, phosphates, clay, and hydropower, and its economy remains heavily dependent on tourism receipts and remittances.
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Economic Overview
economic contraction in 2022-23 marked by increased poverty and significant inflation; IMF two-year debt relief program following 2022 sovereign default; structural challenges from non-diversified economy and rigid labor laws; heavy dependence on tourism receipts and remittances
