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The Island of Sri Lanka has a tropical atmosphere, sited in the Indian Ocean 880 km north of the equator. Its temperature ranges between 25-30% Celsius. It has a population of 20 million, multiethnic and religious with a rich and diverse culture. In 2006, it was hit with the Tsunami, and in 2004, with the Indian Ocean earthquake and several insurrections in 1971, 1987-89, a civil war in 19832009 which has drastically affected her economy. She gained her independence from Britain in February 1948.
Pro-poor Growth Performance of Growth Poverty and Inequality formation of the economy Demography and Environment Education Health 1. Year Value 2000 6. Economy Outline 2.0 Ten Year Average – 5..7 2007 6.8 2008 6.Topic Coverage 1.0 2003 6.0 Figure 01 .0 2009 3.0 2004 5.0 2001 -1. Economy Outline Performance of Growth Economic growth defined as increase the level of production (out put) by a country period of time.0 2006 7. Facilitate environment with Private sector Monetary and Fiscal Policy Financial Sector 4. conflict and the economy How economic impact to conflict? 3.4 2005 6.5 2002 4.
Furthermore the overseas employments contribute their foreign exchange from country likes Dubai. . tea exports.7% in 2006. child sustenance. The post-Tsunami was motivated by reconstruction and fiscal policies. with amounting to 101% of GDP.0.Cumulatively. poverty alleviation and increase in living standards could be achieved if equitable shared. in 2009. Economic alteration and. thwarted growth rate goes down 3. life expectancy. and literacy. Kuwait in Middle-east. Sri Lanka has achieved very good performance. This was earmarked by a 5.In 2008. travel industry. This also affected the constant-price terms by a 2/3 increase. serial production and other agro based products. Poverty and Inequality According to the UNDP’s Human poverty Index portrays its dedication to equity and social justice. Formation of the economy The major formation of the economic in the country is textile. Nevertheless. there was a surge in the per capita GDP from US$600 in 2000 to US$ 1. with an 18 score recorded in 2008 Human Development Report.0% between 2000 and 2009. clothing. growth accelerated by 7. Sri Lanka has achieved very good collective growth after finishing war and focused on producing goods for home utilization including grain. Sri Lanka was bankrupt in 2001. Of 103 developing countries. Using index processes frequency of admission to safe water. rice among other agricultural produce through achieve growth rate next year. Sri Lanka was ranked 42. outstanding for a lower-middle-income country which goes beyond the estimated regression prediction for a country like Sri Lanka.250.
the negative growth of 4.6% the tourism industry is poised for a rebound in view of the pent-up demand for travel arising from the global economic crisis in 2009.Industry of Travel International tourist arrivals are expected to grow between 3% and 4% by end of 2010. This momentum has continued and reflected favourably by an intensifying upward trend for the first four months of 2010. March 2008 by 8. Despite the 2004indian Tsunami and along with before 2009 civil war have declined the tourist arrivals. • Tea industry . however the international media reports publish about the improvements in industry of 2008 by 0.3 percent rate for 2009 in international tourism is beginning to indicate positive outlook with two percent growth during the last quarter of the year.6%. In this regard.
• Agriculture It is the culture for 2500 years for the agricultural sector to produce household consumption such as coconut. . the central highlands are quality tea because of favourable geographical factors. The tea industry specialises on exportation than domestic use. Figure 02 But with only a 1. making it the world’s leading exporter in 2002 with 23% and Kenya with 22%. low temperature climate throughout the year. • Apparel and Textile Industry Sri Lanka has about 900 factories throughout the country serving companies like Victoria’s Secret. This helps alleviate poverty. This industry produces high quality readymade garments and exports to US and Europe.This industry was introduced by the British planter James Taylor in 1852.9 percent EU market and 2 percent US market share indicate that Sri Lanka is not major garment supplier. grain and rice. Sri Lanka is one of the countries exporting tea to the UK among other countries. Tommy Hilfiger and Liz Claiborne. Cannabis. Sri Lanka prides itself in the tea industry as its main foreign exchange. Due to annual rainfall and the level of humidity. the local medication of Sri Lanka is purposely grown-up designed for the desires of Ayurveda.
8% of the population. • People According to the US department data the Southwest and Central parts of Sri Lanka are occupied by the Sinhalese and Indo-Aryan group. The 0.6% of the population.93 by birth. Basically. Moreover reducing entry rate of job seekers. • Gender While evaluating of Sri Lankan on gender equity indicator would be in good form .To guaranty that all citizens are used to full extent and for faster economic growth consequences of productive capacity. .3% a year. there is gender equity. favourable trend of demographic are decrease youth unemployment which be able to active conflict in Sri Lanka. (the ratio of male to female) life expectancy was 0. In 2004. a Dravidian largest minority group of 12. women live longer than men. While the Northeast is occupied by Sri Lankan Tamils. These explain when every 100 working-age adult among 53 dependents. This two rates support reducing the household’s consumption burden for reduction the growth of demand and income earners for public services.Demography and Environment The population of the Sri Lanka is 20 million with in 2009 that increase of 1.53 of low age dependency rate was used for 2006 converting from the moderate rate of population growth. who make up 73.
Fiscal recourses such as. there was an increase in unemployment from 5. Inflation is the clearest signal of a macro economy which climbed to 22. the government has embarked on educational reforms between jobs and graduates. not leaving out own-accounts owners in the farms and informal sectors..There is little unemployment for less educated workers than high school and college graduates. 3. crush progress during conflict intended for some reasons. Conflict and the economy How economic impact to conflict? Ever thought Sri Lanka sustain high rate of growth rate and poverty reduction as discuss above. 1.• Unemployment The Sri Lankan labour force constitutes of anyone aged 10 or above who is employed or seeking employment. The Sri Lanka major risk for sustainability of economic growth is Fiscal and monetary policies. rate of interest towards attains objectives for stability of economy. Facilitate environment with Private sector • Monetary and Fiscal Policy Fiscal policy defined as an expenditure and revenue collection of government to influence the economy.9% in 2009. One hand reducing the available of capital in same time effect to management skills and technology. 2. Monitory policy is the process of supply of money.2% in 2008 to 5. improving agricultural productivity and Investing in infrastructure is expenditure of deflect with the conflict. In order to better prepare students. Crating uncertainty frustrate with clash from foreign direct investment and domestic. Table 02 . Equally these policies may use for control the performance of the economy in short run. 3. • Labour After falling recently. 2. The military expenditure effect badly for fiscal deficit without compensating revenue gains.60 in 2009.
.) -Increase investment risk -High inflation threaten to interest rate -Intensify poverty -Generate labour conflict -Damage on the political systems • Financial Sector . -Undermine the rupee (Sri Lankan currency Rs. If this trend won’t reversed these circumstance will be arise.Year Inflation Rate(Consumer Prices) 9.60% 5.04% during the last decade.80% 12.60% Rank 2003 2005 2007 2009 37 158 200 208 Figure 04 According to Central Bank of Sri Lanka.10% 22. inflation rate increased ( as shown in table 02) which indicate prices rose by 43.
• External Factor Globalization has created new challenges. cost-effective approaches to deal with the resulting adjustment cost and full international market’s advantages and provincial inequity.9 percent in 2007 throughout domestic credit to the private sector by GDP. • Foreign Investment. which measure the ratio of broad money to GDP which has been progressively rising.5% and global LMI’s 2. technology. capital.The financial Sector key elements are fostering productive investment.1% before the armistice and higher than Thailand’s 0.6% for the Philippines. transferring technology and developing human capital are ways FDI can increase productivity gains. 1. • International Trading with the Current Accounts Balance Sri Lankan development is still lacking behind among international trade after discarding the closedeconomy model with trade flows equal to 76. as compared to Thailand 136. reduced transport costs.6 percent in 2003 to 32.4%. lower than 2001’s 1. however cracking down on inflation or allocate nominal interest rate get higher rapidly can restore positive real interest rate by the government.2 percent by 2005. External Debt and the Exchange Rate Enhancing competition. mobilizing saving and convalescing risk management. In 2009. International commerce and finance example of Primary changes together with press on in telecommunication technology.4% and Philippines 102. When evaluating with lower-middle-income countries. Pro-Poor Growth Environment • Education . Sri Lanka’s financial system is mature.1% and the regenerating target of 2. As a country Sri Lanka can improve growth and reduce poverty by motivating effectively and efficiently productivity using goods and services. The prime borrows real interest rate fell to nearly zero in 2005 and became negative in 2006 and 2007 for the reason that capital gains are tax free. The ending response will be increasing consumer choice. The demand of rapid growth encourage for financial resources of credit creating misallocation through negative real interest rate. and cover encourage an increase in global integration. the ratio go up from 28.9% or 0. Broad money = currency + bank deposit (in Sri Lanka) Another factor is an active banking systems. however the sector of banking development simple indicator is the expand collection of monetary. getting 43.3% GDP in 2008. which is below expectation taking into consideration the country’s characteristics. also lower policy barriers. Sri Lanka follows the LMI-Asia’s normal rate of 1.0% was registered. 1. interest charges are tax deductible and even they use funds for unproductive purpose such as importing excess inventory.2%. Totally.
2010. (2003). from sri lanka economic performance: http://pdf. H. 10 22). According to the UNESCO data explains a net enrolment rate of primary school was 95. Macroeconomics (9th edition ed. (B. on form beyond the regression benchmark (86. from http://www. Economic growth interventions can be influenced by understanding health conditions. (2010).google. This is evident in the drop from 1. Further Sri Lanka’s education display and disclose impressive performance for a lower class and middle class income country. 05 12). Macro Economics (6th edition ed.) Berkshire: The McGraw -hill companies . latha. 12). A major form of investing in person capita is via basic health service with growth benefits and poverty alleviation. Byrns. Central bank of Sri Lankan report. Rudiger Dornbusch.com. Gerald W. Ed.usaid. (2005). (J.Sri Lankan government provides primary and advance level schooling for all without charge.com/watch? v=YuGUkFdMzgc .org/wiki/Economy_of_Sri_Lanka www. Richard Startz. (2004). Perfrmance of sri lankan economy last decade.youtube. Retrieved 11 13. L.wikipedia.youtube. Retrieved 11 6. Economy-Sinhala Language . Retrieved 11 10. Kaplan.). (Ed. 24(6). 2010. Economics (7th edition ed. (2010.9% to 1. Ralph T.google.com.gov/pdf_docs/PNADH748. Stantey Fischer. 23-40.7% indicator. 2010.pdf www. Rudiger Stanley Fischer. Stone. from wikipedia: http://en.-I.).) Newyork: Harper collins college publisher.1) • Health Sri Lanka prides which they can provide excellent public health circumstances event thought low levels of public spending. New-delhi: Tata McGraw -hill edition. Ed.).6) as well a standard for LMI-Asia (95. Partridge. www. Reference (2009). (2006.com. Central bank of Sri Lanka. David Begg.1 for 2008. (2010.).