Economic Environment

• Exports in Sri Lanka surged by 18.5 percent to USD 969.8 million

in April of 2022, boosted by sales of industrial products (21.9%),
mainly textile and garments (22.3%), rubber products(10.7%); and
agricultural products (7.3%), in particular tea (1.5%).
• Poverty at $3.20 per day is projected to remain broadly unchanged
from 2021. Due to the COVID-19 pandemic, the economy
contracted by 3.6 percent in 2020, raising the $3.20 poverty rate to
an estimated 11.7 percent.
• Growth slowed to an average 3.1 percent between 2017 and 2019
from the 6.2 percent between 2010 and 2016, as a peace dividend
and a policy.
 Product and services of Sri Lanka
Product
Knitted Clothing
Not Knitted Clothing
Coffee, tea, mate and spices
Rubber and articles thereof
Electrical Machinery and equipment
Natural Pearls and precious stones
Edible fruits and nuts
Fish and crustaceans
Miscellaneous edible preparations
Mineral fuels and oils
Value (USD Million)
 The top exports of Sri Lanka are
 Tea ($1.27B),
2702  Brassieres, girdles, corsets, braces,
1895 suspenders, garters and similar articles and
1525 parts thereof .($518M),
801
 Slips, petticoats, briefs, panties, nightdresses,
pyjamas, negligees, bathrobes, dressing
241
gowns and similar.. ($466M),
215  Suits, ensembles, jackets, dresses, skirts,
192 divided skirts, trousers, bib and brace
182 overalls.($447M)
173
 Suits, ensembles, jackets, dresses, skirts,
divided skirts, trousers, bib and brace
163
overalls. ($446M)
 exporting mostly to United States ($2.61B),
United Kingdom ($922M), India ($740M),
Germany ($678M), and Italy ($460M).
 SERVICES:
The Public Services of Sri Lanka are a series of services groups that provide specialized
professional services to the Government of Sri Lanka. These are government
employees who carry out public duties, however they are not elected officials.
Public support services (professional) Support services ( nonprofessional)
• Sri Lanka Administrative Service • General Clerical Service
• Sri Lanka Overseas Service • Government Typists Service
• Sri Lanka Police Service • Government Stenographers Service
• Sri Lanka Customs Service • Government Book-Keepers Service
• Sri Lanka Educational Administrative Service  • Government Store-Keepers Service
• Sri Lanka Immigration Service • Librarians Service
• Sri Lanka Surveyors' Service • Drivers Service
• Sri Lanka Architects Service • Office Employees Service (K.K.S.)
• Sri Lanka Technical Education Service • Management Assistance Service
• Sri Lanka Technical Service • Sri Lanka Development Assistants' Service
 Country risk
• Country risk in Sri Lanka is high. The OECD has a country
credit grade of 7. The three major ratings agencies have
sub-investment grade sovereign credit ratings
• Shortages of food and fuel, along with record inflation and
regular blackouts, have brought thousands of Sri Lankans
to the streets as the country faces its most painful
downturn since independence from Britain in 1948.
• “Social turmoil is the biggest risk. That’s why I keep
emphasizing the point about cash transfers. As you can
see on the streets — the people are angry,” said
Devarajan, who is now part of a new government advisory
panel formed to tackle the country’s debt crisis.
 Monetary environment
• Currency
• The currency code for Rupees is LKR,
and the currency symbol is ₨.The
rupee is the legal tender of Sri Lanka.
• Sri Lanka’s rupee has plunged to a
record low to become the world’s
worst-performing currency, as
President Gotabaya Rajapaksa
struggles to contain a worsening
economic and political crisis.
• Its abbreviation is Rs. Pakistani 1
rupee is equal to 1.76 Sri Lankan
Rupee.
• Currency risk
• Sri Lanka is effectively devaluing its
currency as its foreign reserves
dwindle, potentially accelerating the
worst inflation surge in Asia as the
nation struggles to service its debt and
pay for imports.
• Sri Lanka's foreign reserves fell to $2.36
billion at the end of January and it is
due to repay about $4 billion in debt in
the rest of 2022, making it likely that