SRI LANKA

Sri Lanka remains one of the most attractive investment destinations in the Asia-Pacific region with its strategic location, good infrastructure, high quality workforce and an open market economy, playing a key role in attracting Foreign Direct Investment.  Now, with the eradication of terrorism, a huge potential has emerged for investment in areas, such as, agriculture, infrastructure, dairy farming, aquaculture, tourism, education and skill development, industries and housing.   Colombo is the largest city and commercial capital of Sri Lanka.  It is located on the west coast of the island and adjacent to Sri Jayewardenepura Kotte, the capital city of Sri Lanka.

Location

Southern Asia, island in the Indian Ocean, South of India (strategic location near major Indian Ocean sea lanes)

Climate

Tropical monsoon, northeast monsoon (Dec. to March);  Southwest monsoon (June to October)

Natural Resources

Limestone, graphite, mineral sands, gems, phosphates, clay, hydropower

Population

21,324,791 (July 2009)

Ethnic Groups

Sinhalese 73.8%, Sri Lankan Moors 7.2%, Indian Tamil 4.6%, Sri Lankan Tamil 3.9%, other 0.5%, unspecified 10% (2001 census provisional data)

Religions

Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2%, unspecified 10% (2001 census provisional data)

Languages

Sinhala (official and national language) 74%;  Tamil (national language) 18%; Other 8%.  English is commonly used in government and is spoken competently by about 10% of the population.

National Holiday

4^th February

Currency

Sri Lankan Rupee (LKR)

Fiscal Year

Calendar year

Agriculture products: Rice, sugar cane, grains, pulses, oilseed, spices, tea, rubber, coconut, milk, eggs, hides, beef and fish.

Industries: Processing of rubber, tea, coconuts, tobacco and other agricultural commodities, telecommunications, insurance, banking, clothing, textiles, cement, petroleum refining and Information Technology Services.

The Sri Lankan economy saw a gradual deceleration in growth over the past year.  Quarterly growth rate moved from 7.6% in the fourth quarter of 2007 to 4.3% in the last quarter of 2008.   Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, port construction, telecommunications, and insurance and banking.  In 2008, plantation crops made up only about 20% of exports (compared with more than 90% in 1970), while textiles and garments accounted for more than 40%.  The economic growth of the country accelerated at its fastest in 2009 after the end of the civil war, boosted by new investment and low interest rates.  The economy grew by 4.2 percent during the third quarter to September 2009, double the 2.1 percent growth it posted in the second quarter.