Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.
Processing Of Rubber, Tea, Coconuts, Tobacco And Other Agricultural Commodities; Telecommunications, Insurance, Banking; Tourism, Shipping; Clothing, Textiles; Cement, Petroleum Refining, Information Technology Services, Construction
Rice, Sugarcane, Grains, Pulses, Oilseed, Spices, Vegetables, Fruit, Tea, Rubber, Coconuts; Milk, Eggs, Hides, Beef; Fish
CIA, The World factbook