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Managerial Economics

Sri Lanka
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Sri Lanka is an island country located off the southern
coast of India. Sri Lanka is surrounded by the Indian
Ocean, Gulf of Mannar, the Palk Strait, and lies in the
vicinity of India and the Maldives. The geography of
Sri Lanka includes coastal plains in the north and hills
and mountains in the interior. The government
system is a republic; the chief of state and head of
government is the president. Sri Lanka has
transitioned to a market-orientated economy, but the
central government is still involved in economic
planning. Sri Lanka is a member of the Asia-Pacific
Trade Agreement (APTA) and the South Asian
Association for Regional Cooperation (SAARC).
Sri Lanka is
home to many religions, ethnic groups, and
languages.In addition to the majoritySinhalese, it is
home to large groups ofSri LankanandIndian
Tamils,Moors,Burghers,Malays,Kaffirsand the
aboriginalVedda.Sri Lanka has a rich Buddhist
heritage, and the first known Buddhistwritings of Sri

GDP of Sri Lanka

GDP Per capita of Sri Lanka

Meaning of Per capita GDPis a measure of the total output of a country

that takes gross domestic product and divides it by the number of people in
the country. The per capita gdpis especially useful when comparing one
country to another, because it shows the relative performance of the
The Gross Domestic Product per capita in Sri Lanka was last recorded at
3637.54 US dollars in 2015. The GDP per Capita in Sri Lanka is equivalent to
29 percent of the world's average. GDP per capita in Sri Lanka averaged
1449.91 USD from 1961 until 2015, reaching an all time high of 3637.54 USD
in 2015 and a record low of 582.66 USD in 1961. GDP per capita in Sri Lanka
is reported by the World Bank.

Poverty level in Sri lanka

Poverty in Sri Lankacontinues to be a

large problem.Sri Lankabeing an
exceptional country with itslife
expectancy,literacy rateand othersocial
indicatorsnearly on par with those
ofdeveloped countries, and even topping
the rankings for theSouth Asiaregion.
While all these indicate that Sri Lanka
should be experiencing a highstandard of
living, until recently it has only ranked in
the medium category of theHuman
Development Index(HDI).This is despite
the fact that Sri Lanka has been
experiencing moderate growth in
itsGDPaveraging 5.5 per annum between
2006 and 2009.One of the reasons is due
to its relatively lowGDP per capita;
currently ranked in the bottom one third of
the world. This could be due to the issue
ofpoverty, specifically,rural poverty. The
Sri Lankan government has been successful
in reducing poverty from 15.2% in 2006 to
8.9% in 2010, urban poverty was reduced
from 6.7 to 5.3% while rural poverty was
reduced from 15.7 to 9.5%, and the nation
has made significant progress towards
achievingMillennium Development Goals
on eradicating extreme poverty and

Inflation Rate
Meaning of inflation: Inflation
is the rate at which the general
level of prices for goods and
services is rising and,
consequently, the purchasing
power of currency is falling.
The annual inflation rate in Sri
Lanka slowed to 5.50 percent in
July of 2016, from 6 percent in
June. Inflation Rate in Sri Lanka
averaged 9.78 percent from
1986 until 2016, reaching an all
time high of 28.30 percent in
June of 2008 and a record low of
-0.90 percent in March of 1995.

Exchange Rate
Meaning of Exchange Rate :It refers to the
rate at which one currency is exchanged for
1 Sri Lankan rupees equals to 0.46 Indian
In terms of dollar 0.0069 equals to 1 Sri
Lankan rupee

Denominations and Coin

The Sri lankan currency is the rupee (Rs), divided
into 100 cents; pricing in cents is rare. Rupee coins
come in denomination of one, two, five and 10
rupees. Notes come in denominations of 10, 20, 50,
100, 200, 500, 1000, 2000 and 5000 rupees.
Currencys are printed by theDe la Rue Lanka
Currency and Securities Print (Pvt) Ltd, a joint
venture of the Government of Sri Lanka andDe La
Rue, a printing company in the United Kingdom
The coins were prepared by punches till 1945 after
later came the polymer bank notes .

Financial crisis faced

In the initial decade of the 21century, the world has come to grip with the
frightening scene ofan economic crisis which - according to some - has no known
precedent in history.
The collapse of the banking system on which the countries depend for their
economic activity
development to a standstill, shutting down of industrial and business organisations,
and lowering the living standards of populations andthe downward spiral of global
trade . The first sign of the global economic crisis became visible in the U.S. housing
market sector in2008.
Since then it has been spreading to almost every country in the world developed
as well as developing. At first, we were hopeful that we would not be affected by the
ill-effects of the depression, but now there are signs indicating that we too would be
caught up in the vortex . Ours is an export-import oriented economy.
export tea, rubber, coconut, spices, ready-made garments and jewellery etc. to
earn the necessary foreign exchange to pay for the countrys import needs. The
countries which buy these things from us have been badly affected and demand for
them is ever on the decrease.
There are warnings that the plantation sector has beg unto feel the clutches of the
crisis. Several local industries have already laid off their work staff as a result of
having no demandfor their produce in the international market . The nationals who
have migrated for employment abroad is another principal sector sending