Sri Lanka—Economic System
Sri Lanka is a relatively poor country, although a per capita income of $3,250 (2000 est.) makes it a lower-middle-income nation. Some 22 percent of the population lives in poverty, fewer than earlier (1985–1986: 40.6 percent). Earnings from traditional export crops (tea, rubber, coconut) accounted for about 19 percent of total export earnings (1998). Their importance sharply declined during the last three decades of the twentieth century relative to garments, textiles, and other industrial products. Creation of sufficient job opportunities for a rapidly increasing labor force and reduction of poverty are two pressing socioeconomic problems.
Sri Lanka is a famous example of a poor country with a remarkable performance in improving quality of life. On the Human Development Index of the United Nations Development Programme (UNDP), Sri Lanka ranked 90th of 174 countries in 1997, twenty-two places above its ranking for per capita gross national product (GNP). This impressive performance can be attributed to the high adult literacy rate (almost 91 percent), high school enrollment ratio of both sexes, and high life expectancy (over 72 years).
Further Reading
Athukorala, Prema-chandra, and Sarath Rajapatirana. (2000) "Liberalization and Industrial Transformation: Lessons from the Sri Lanka Experience." Economic Development and Cultural Change 48, 2: 543–572.
De Silva, S. B. D. (1982) The Political Economy of Underdevelopment. Boston: Routledge and Keagan.
Karunatilake, H. N .S. (1987) The Economy of Sri Lanka. Dehiwala, Sri Lanka: Center for Demographic and Socio-Economic Studies.
Kelegama, Saman. (2000) "Development in Independent Sri Lanka: What Went Wrong?" Economic and Political Weekly (22 April): 1477–1490.
Snodgrass, David R. (1967) Ceylon: An Export Economy in Transition. Homewood, IL: Richard D. Irwin.
World Bank. (1998) Social Services: A Review of Recent Trends and Issues. Washington, DC: World Bank.
———. (1999) Sri Lanka: A Fresh Look at Unemployment. Washington, DC: World Bank.
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