The Economy of Sri Lanka Essays
Sri Lanka is the home to many languages, cultures, ethnicities. It is an island country on the northern Indian Ocean off the southern coast in India’s subcontinent located in southern Asia. There are many things that contribute to their economic growth and I shall discuss some of them below.
ECONOMIC HISTORY OF SRI LANKA
According to Sri Lanka wonder of Asia, (2014), when explaining Sri Lanka economic growth, it is advisable for the purpose of this essay to look into Sri Lanka’s history from pre-historic time, colonial era and independence. (the world bank, 2013)
• A group of people from South India, called Cholas ruled Sri Lanka for 70 years.
• Queen Anula was the first female ruler of Sri Lanka, being …show more content…
• The birth rate in Sri Lanka has risen in the last few years to around 17.64 births per population of 1000 people. (2013)
• The median age of people in Sri Lanka is estimated to be 31.1 years of which the median age of men is 30.1 years and females 32.2 years. (2013)
Figure 1: Graph of Population Growth in Sri Lanka.
The cultivation of rice in Sri Lanka normally takes place during the Yala and Maha seasons. About 31.8% of the population of Sri Lanka engage in agricultural activities and agricultural activities mainly depends on the production of rice. About 2.7 million tonnes of rice is produced annually in Sri Lanka and this satisfies 95% of the domestic requirement. An average Sri Lankan gets 40% protein and 45% calorie from rice. Rough rice costs about Rs. 8.57 per kg currently and the cost of labor, tradable inputs and farm power constitutes 55%, 23% and 23% respectively but the cost of labor has risen at a higher rate than others over the last few years.
The tea industry is one of the main sources of foreign exchange for Sri Lanka and it accounts for 2% of GDP which generates about $700 million annually to Sri Lanka economy. It employs over a million people, whether directly or indirectly, in 1995 it directly employed 215,338 on estates and tea plantations. The fourth largest tea producer is Sri Lanka, it was leading in tea exporting but not producing but now Kenya has surpassed it. The