Economic History

Sri Lanka began to shift away from a socialist orientation in 1977. Since then, the government has been deregulating, privatizing, and opening the economy to international competition. Twenty five years of civil war has slowed economic growth , diversification and liberalization, and the political group Janatha Vimukthi Peramuna (JVP) uprisings, especially the second in the late 1980s, also caused extensive upheavals.

The Mahinda Rajapakse government halted the privatization process and launched several new companies. Sri Lanka has a relatively high Human Development Index with a high literacy rate (90.1%) which are the result of universal education policies and widespread healthcare. Sri Lanka's Human Development Index and literacy rate are among the highest in the South Asian region, and infant mortality is among the lowest. Sri Lanka has 555 publicly funded hospitals.

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.

Economic growth has been uneven in the ensuing years as the economy faced a multitude of global and domestic economic and political challenges. Overall, average annual GDP growth was 5.2% over 1991-2000.

In 2001, however, GDP growth was negative 1.4%--the first contraction since independence. The economy was hit by a series of global and domestic economic problems and affected by terrorist attacks in Sri Lanka and the United States.

The crises exposed the fundamental policy failures and structural imbalances in the economy and the need for reforms. The year ended in parliamentary elections in December, which saw the election of a pro-capitalism party to Parliament, while the socialism oriented Sri Lanka Freedom Party retained the Presidency.

The government of Prime Minister Ranil Wickremasinghe of the United National Party has indicated a strong commitment to economic and social sector reforms, deregulation, and private sector development.

In 2002, the economy experienced a gradual recovery. Early signs of a peace dividend were visible throughout the economy—Sri Lanka has been able to reduce defense expenditures and begin to focus on getting its large, public sector debt under control.

In addition, the economy has benefited from lower interest rates, a recovery in domestic demand, increased tourist arrivals, a revival of the stock exchange, and increased foreign direct investment (FDI).

In 2002, economic growth reached 4%, aided by strong service sector growth. The agricultural sector of the economy staged a partial recovery. Total FDI inflows during 2002 were about $246 million.

The largest share of FDI has been in the services sector. Good progress was made under the Stand By Arrangement, which was resumed by the International Monetary Fund (IMF). These measures, together with peaceful conditions in the country, have helped restore investor confidence and created conditions for the government to embark on extensive economic and fiscal reforms and seek donor support for a poverty reduction and growth strategy.

The resumption of the civil-war in 2005 led to a steep increase defence expenditures. The increased violence and lawlessness also prompted some donor countries to cut back on aid to the country.

Sri Lanka has also accumulated a 9.2 % deficit and the central bank has not intervened since late 2006 to print more currency

A sharp rise in world petroleum prices combined with economic fallout from the civil war led to inflation that peaked 20%. However, as the civil war ended in May 2009 the economy started to grow at a higher rate of 8.0% in the year 2010.

Sri Lankan Economy

With an economy worth $56 billion (2011 IMF estimate) ($140 billion PPP estimate),[1] and a per capita GDP of about $7000 (PPP), Sri Lanka has mostly had strong growth rates in recent years. 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.

Since becoming independent from Britain in February 1948, the economy of the country has been affected by natural disasters such as the 2004 Indian Ocean earthquake and a number of insurrections, such as the 1971, the 1987-89 and the 1983-2009 civil war. The parties which ruled the country after 1948 did not implement any national plan or policy on the economy, veering between left and right wing economic practices. The government during 1970-77 period applied pro-left economic policies and practices. Between 1977 and 1994 the country came under UNP rule and between 1994 and 2004 under SLFP rule. Both of these parties applied pro-right policies. In 2001, Sri Lanka faced bankruptcy, with debt reaching 101% of GDP. The impending currency crisis was averted after the country reached a hasty ceasefire agreement with the LTTE and brokered substantial foreign loans. After 2004 the UPFA government has concentrated on mass production of goods for domestic consumption such as rice, grain and other agricultural products.

The suites locations could be classified on the basis of Sri Lankas inland provinces as follows.

Western (Introduce Sectors)

Sabaragamuwa

 North Western

 North Eastern

North Central

Northern Province

 Southern Province

 Uva

Central

Sri Lankan Map

About Flag

The Sri Lanka flag was officially adopted on December 17, 1978.dot Prior to 1815, the gold lion was originally the national flag of Ceylon; its four pipul leaves are Buddhist symbols and the sword is said to represent authority. On this modern version, the green represents Muslims, while the orange represents Hindus.

Ancient Sri Lanka

                                                          The Sigiriya rock fortress

 According to the Mahavamsa, a chronicle written in Pali language, the ancient period of Sri Lanka begins in 543 BC with the landing of Vijaya, a semi-legendary king who arrived in the country with 700 followers from the southwest coast of what is now the Rarh region of West Bengal.He established the Kingdom of Tambapanni, near modern day Mannar. Vijaya is the first of the approximately 189 native monarchs of Sri Lanka, the chronicles like Dipavamsa, Mahavamsa, Chulavamsa and Rajavaliya describe. (see List of Sri Lankan monarchs) Sri Lankan dynasty spanned over a period of 2359 years, from 543 BC to 1815 AD, until it came under the rule of British Empire.
The Kingdom of Sri Lanka moved to Anuradhapura in 380 BC, during the reign of Pandukabhaya. Since then, Anuradhapura served as the capital of the country for nearly 1400 years.Ancient Sri Lankans excelled in various constructions such as tanks, dagobas and palaces.The society underwent a major transformation during the reign of Devanampiya Tissa, with the arrival of Buddhism from India. In 250 BC,bhikkhu Mahinda, the son of the Mauryan Emperor Ashoka arrived in Mihintale, carrying the message of Buddhism.His mission won over the monarch, who embraced the faith and propagated it throughout the Sinhalese population.The succeeding kingdoms of Sri Lanka would maintain a large number of Buddhist schools and monasteries, and support the propagation of Buddhism into other countries in Southeast Asia as well.In 245 BC, bhikkhuni Sangamitta arrived with the Jaya Sri Maha Bodhi tree, which is considered to be a sapling from the historical Bodhi tree under which Gautama Buddha became enlightened.It is considered the oldest tree in the world, with a continuous historical record. (Bodhivamsa)

                     The Rankot Vihara or the Golden Pinnacle Dagoba in Polonnaruwa, 12th century


Sri Lanka experienced the first foreign invasion during the reign of Suratissa, who was defeated by two horse traders named Sena and Guttika from South India.The next invasion came immediately in 205 BC by a Chola king named Elara, who overthrew Asela and ruled the country for 44 years. Dutugemunu, the eldest son of the southern regional sub-king, Kavan Tissa, defeated Elara in the Battle of Vijithapura. He built Ruwanwelisaya, the second stupa in ancient Sri Lanka, and the Lovamahapaya.During its two and half millenias of existence, kingdom of Sri Lanka was invaded at least 8 times by neighbouring South Asian dynastys such as Chola, Pandya, Chera and Pallava.There had also been incursions by the kingdoms of Kalinga (modern Orissa) and from Malay Peninsula as well. Kala Wewa and the Avukana Buddha statue were built during the reign of Dhatusena.
Sri Lanka was the first Asian country to have a female ruler; Queen Anula who reigned from 47–42 BC.Sri Lankan monarchs have attained some remarkable construction achievements like Sigiriya, the so-called "Fortress in the Sky". It was a constructed during the reign of Kashyapa I. Sigiriya is a rock fortress surrounded by an extensive network of gardens, reservoirs, and other structures. The 5th century palace is also renowned for frescos on the rock the surface.It has been declared by the UNESCO as the 8th Wonder of the world.Among the other constructions, large reservoirs, important for conserving water in a climate that alternates rainy seasons with dry times, and elaborate aqueducts, some with a slope as finely calibrated as one inch to the mile are dominant. Biso Kotuwa, a peculiar construction inside a dam, is a technological marvel based on precise mathematics, allowing water to flow outside the dam keeping the pressure to a minimum.Ancient Sri Lanka was the first country in the world to have established a dedicated hospital; in Mihintale in the 4th century.It was also the leading exporter of cinnamon in the ancient world, and has maintained close ties with European civilizations including the Roman Empire. For example, King Bhatikabhaya (BC 22 - 7 AD) had sent an embassy to Rome and got down coral for a net to be cast over the Ruwanwelisaya.Bhikkhuni Devasara and ten other fully ordained bhikkhunis from Sri Lanka had went to China and established the bhikkhuni sasana there in 429 AD.














                                                                                                                         

History Of Sri Lanka

                                  Frescos on the Sigiriya rock fortress in Matale District, 5th century


The pre-history of Sri Lanka dates back over 125,000 years Before Present (BP) and possibly even as early as 500,000 BP.The era spans the Palaeolithic, Mesolithic and early Iron ages. Among the Paleolithic (Homo Erectus) human settlements discovered in Sri Lanka, Pahiyangala (named after the Chinese traveler monk Fa-Hsien), which dates back to 37,000 BP,Batadombalena (28,500 BP)and Belilena (12,000 BP) are the most important. The remains of Balangoda Man, an anatomically modern human, found inside these caves,suggests that they may have engaged in agriculture and kept domestic dogs for driving game.


One of the first written references to the island is found in the Indian epic Ramayana, which provides details of a kingdom named Lanka that had been created by the divine sculptor Vishwakarma, for Kubera, the lord of wealth.It is said that Kubera was overthrown by his demon stepbrother Ravana, the powerful Emperor who built a mythical flying machine named Dandu Monara.The modern city of Wariyapola is described as Ravana's airport.

Ravana belonged to the tribe Raksha, which lived alongside four Hela tribes named Yaksha, Deva, Naga and Gandharva.These early inhabitants of Sri Lanka were probably the ancestors of the Vedda people,an indigenous community living in modern-day Sri Lanka, which numbers approximately 2,500. Irish historian James Emerson Tennent theorised Galle, a southern city in Sri Lanka, was the ancient seaport of Tarshish, from which King Solomon is said to have drawn ivory, peacocks and other valuables. Early inhabitats of the country spoke the Elu language, which is considered the early form of the modern Sinhala language.