Sri Lanka Economy
Sri Lanka is a developing economy based largely on agriculture, services, and light industry. Agriculture accounts for approximately 21 percent of the gross domestic product (GDP) and employs 38 percent of the workforce. Sri Lanka is a lower-middle income developing nation with a gross domestic product of about $41 billion. Sri Lanka depends on a continued strong global economy for investment and for expansion of its export base. Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, telecommunications, and insurance and banking.
The percentage share of the three major sectors, the agriculture, industry and services to the total National Income more or less remained unchanged being 12.0 percent, 28.6 percent and 59.3 per cent.
Textiles are the biggest export of Sri Lanka. Sri Lankan tea is very famous and is exported all over the world. Gems, rice, tea, rubber, coconut, and spices are also exported to foreign from Sri Lanka.
Tourism is a big revenue earner for Sri Lanka Hotels and Restaurants sector recorded a 13.3 percent relatively high growth in 2009 as against the negative growth rate of 5.0 percent for the previous year. Sri Lanka’s tourist infrastructure can handle up to 800,000 visitors a year, comfortably meeting expected demand this year of 500,000.
Agriculture Sector in Sri Lanka
The agriculture sector is the cornerstone in Sri Lanka's economy with more than 70% of the population living in rural areas depending on agriculture for their livelihoods. Fragmented land use, insufficient availability of water, credit, seed, technical know-how, technology, marketing, storage and transportation, poor farming practices continue to weaken productivity in agriculture.
Industrial and Service Sector
The industrial sector and the service sector constitute a major portion of Sri Lanka's GDP or gross domestic product. The industrial sector of Sri Lanka comprises of different industries like mineral industry, textile industry, food processing, petroleum, rubber processing and cement processing industry. The main fields which contributed largely to the growth of service sector are Insurance, Banking, telecommunication and tourism.
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