Presented By:

Aaqibuddin
Aamir Ali
Waseem Ali
Muhammad Kashif
Jameel Ahmed
INTRODUCTION

• Previously known as Ceylon

under British rule.
• Total Area of Srilanka 65,610
sq.km.
• Known for exporting best Tea
with unique taste.
• Population 21.2 million
• Life expectancy 75.56 years
RELIGIONS IN SRILANKA
% of Population

6% 1%

10%

Buddhist
12% Hindu
Muslim
Roman Catholic
Others

71%
 FACTS AND FIGURES
• Life expectancy at birth is 75.1 years.
• Children Mortality rate is 8 per thousand people.
• Maternal mortality rate is 10 per 100,000 live births,
• 94% of population use improved water resources,
• 92% of the total population use improved sanitation system, 88.7% of the population have
access to safe drinking water.
• 44.3% of the population have access to pipe-borne water.
• Adult (age 10 years and above) literacy rate is 95.5%.
• Pupil/Teacher is 18.
• Over 90% of the population goes for primary education at least.
 ECONOMY OF SRILANKA
• Srilankan GDP in 2016 was 81.32 billion dollars.
• Income per capita in 2016 was recorded as high as 2759.2 dollars.
• prominent productions and industries of Srilanka are processing of rubber, tea,
coconuts, tobacco, telecommunications, insurance, banking, tourism, shipping,
clothing, textiles, cement, petroleum refining, information technology services.
• Srilanka imports textile fabrics, mineral products, petroleum, foodstuffs,
machinery and transportation equipment from different countries. all of it’s
imports worth $19.01 billion in 2016
• . Srilanka exports textiles and apparel, tea and spices, diamonds, emeralds,
rubies, coconut products, rubber, fish. All the exports worth $10.53 billion in
2016.
 HISTORY OF
DEVELOPMENT
• The independence from the British commonwealth on 04th
February, 1948
• Trapped into one of the worst wars in the history of Sri Lanka
arising out of ethnic and racial tensions between the majority
of Sinhalese and Tamil minority in southeast in 1983
ECONOMIC DEVELOPMENT AND STRUCTURAL
CHANGE SINCE INDEPENDENCE

• Years of structural changes in the economy and economic and social

transformations.
• From agricultural economy to diverse economy since independence.
1. Agriculture 11%
2. Services 59%
3. Industry 30.4 %
• The economy grew at 4.5 per cent annually
• Unemployment has fallen below 4 per cent
• The poverty headcount is 9 per cent
1. Social indicators
life expectancy was 75.1 years
infant mortality was as low as 9.4 per thousand (2009)
adult literacy was 92.2
ECONOMIC GROWTH

• Economy grew at an average of 4.5% since

independence
• The lowest rates of growth were during 1970-77 and
1987-89 (2.8% and 2.2%)
• The reasons were drought and insurgency
 Policy reforms introduced in
1977 ( 8.2% growth) till 1984

GROWTH
1987
AND DECLINE
1978-1993 1977

Then declined to 2.2% from

1987 to 89 due to insurgency
ECONOMIC PERFORMANCE 1994 – 2004

• Grew on average to 5.5% but continues to decline in 1996 due

to drought and insecurity reduced food crop production and
caused power cuts that disrupted industrial production.

• Tourism suffered a setback and business confidence weakened.

ECONOMIC GROWTH 2005-2013

Again fell down to

6.3% due to global Despite the war it
recession crisis in has increased
2012 but average growth of
increased on 7% from 2005 to
average till now at 2009
7.5 %

Civil war ended in

2009 and then the
increased growth
of 8% to 8.4% till
2011
TOUGH DEVELOPMENT

01
There has been an increasing dependence on foreign loans,
foreign remittances and earnings from tourism.
• High fiscal deficits
• a large public debt
• a large foreign debt
• high debt servicing costs
• large trade deficits
 SRILANKA’S HDI VALUE AND RANK.
• Srilanka HDI value for 2015 is 0.766 high human development category positioning
it at 73 out of 188 countries and territories.
ISSUES AND
CHALLENGES
 EDUCATION
• More demand for education.
• Infrastructure of schools.
 POVERTY

• The government has controlled the extreme poverty.

• Moderate poverty remains a big challenge for the government.
• It has 15 percent of the population lived on less than $3.10 per day.
 HEALTH
• More private hospitals than government.
• Most of the hospitals are in Colombo.
• Over 60 age people needs special hospitals and
treatment.
1)STRUCTURAL REVENUE MEASURES:

• Tax department is not performing as per standards.

• Tax burden in Sri Lanka is 10.07% on the total of domestic
income.
• The structure is less growth favorable in global economy
and it is faster than expected growth in the prices of
commodities.
 WEAK JUDICIARY:

• Corruption
• Inappropriate people on higher levels.
 WOMEN EMPOWERMENT

• Socio-cultural barriers.
• less political representation in the parliament.
• The females have high education rate than the
male.
 RESTRICTED MARKETS

• Investment in some sectors are restricted by government.

• Sri Lanka market is categorized in mostly unfree market.
• The financial sector remained under developed.
• 112th number on the world level in financial sectors.
POLICY SUGGESTIONS
1. FISCAL REFORM;VAT
2. STATE-OWNED ENTERPRISE REFORMS
3. FINANCIAL AND CONSTRUCTION SECTORS
4. OPEN MARKETS
5. FOREIGN DIRECT INVESTMENT
6. JUDICIARY SYSTEM
7. REGULATORY EFFICIENCY