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Estimated Market Prices of Essentials
Average retail prices for key food items in local markets (Rs/kg)
Primary Sources
Unlocking Sri Lanka's economic success: Harnessing the power of ...
Opinion By Dr. Ravinthirakumaran Navaratnam The economic success or stagnation of a country depends on factors such as strong institutions, effective governance, economic policies, education, infrastructure, and resource management. Geography plays a role, with resource-rich nations having an advantage, but mismanagement can lead to stagnation. Education and skill development create a productive workforce, while modern infrastructure and technology drive economic efficiency. Political stability and investor-friendly policies attract growth, whereas corruption and instability hinder progress. Colonial history also influences development, with some nations overcoming past disadvantages while others struggle with lingering economic disparities. Sri Lanka’s economy has been facing severe challenges, including a high debt burden, foreign exchange shortages, inflation, slow economic growth, and rising unemployment. The country’s debt crisis led to a sovereign default in 2022, making debt restructuring a top priority. Foreign reserves remain low, limiting the ability to import essential goods such as food, fuel, and medicine. Inflation, although moderating, continues to impact the cost of living, reducing the purchasing power of ordinary citizens. Economic growth has been sluggish, with contractions in key sectors such as tourism, manufacturing, and agriculture. Additionally, structural weaknesses, including an oversized public sector and inefficient state-owned enterprises, have contributed to fiscal instability. Political and social unrest have further weakened investor confidence, making economic recovery even more challenging. As of March 17, 2025, Sri Lanka is experiencing a period of economic stabilisation and growth following the severe crisis of 2022. The government has implemented significant reforms, leading to budgetary discipline, a bullish stock market, and improved credit conditions. The economy is projected to grow by 5% in 2025, with a primary budget surplus of 2.3% of GDP, aligning with International Monetary Fund (IMF) programme targets. Tourism has seen a resurgence, contributing to economic recovery. The government is also focusing on digital transformation, allocating LKR 3 billion towards digital investments and aiming to generate US $15 billion in revenue through the digital economy by 2030. However, challenges remain, including the need to boost tax compliance, better target social welfare, and manage capital spending to maintain fisca...
Economy of Sri Lanka - Wikipedia
Economy of Sri LankaColombo, the financial centre of Sri LankaCurrencySri Lankan rupee (LKR, Rs)Fiscal yearCalendar yearTrade organisationsWTO, WCO, SAFTA, IOR-ARC, BIMSTEC, AIIBCountry group Developing/Emerging[1] Upper-middle income economy[2] StatisticsPopulation 21,756,000 (2025)[3]GDP $108.8 billion (nominal, 2025)[4] $342.6 billion (PPP, 2024)[5] GDP rank 71st (nominal, 2024) 62nd (PPP, 2024) GDP growth 5.0% (FY2024)[6][5] 5.0% (FY2025)[7] 4.8% (4Q 2025)[8] GDP per capita $5,003 (nominal, 2025)[4] $15,632 (PPP, 2024)[9] GDP per capita rank 120th (nominal, 2024) 111th (PPP, 2024) GDP by sector Agriculture: 7.5% Industry: 26.7% Services: 59.2% (2024)[6]Inflation (CPI) 1.60% (February 2026)[10]Population below poverty line12% lived on less than $4.20/day (2019)[11] 53% lived on less than $8.30/day (2019)[12]Human Development Index 0.776 high (2023)[13] 89th 0.630 medium (IHDI) Corruption Perceptions Index 35 out of 100 points (2025, 107th rank)Labour force 8.554 million (2025 est)[4] 49.4% participation rate (2025 est)[4] Labour force by occupation agriculture: 26.4% industry: 25.4% services: 48.3% (2024-3Q)[14] Unemployment 4.7% (2023) 4.4% (2024) 3.9% (2025)[4] Main industriestextiles & clothing, tourism, telecommunications, information technology services, banking, shipping, petroleum refining, construction and processing of tea, rubber, coconuts, tobacco and other agricultural commoditiesExternalExports $17.2 billion (2025)[15] Export goodstextiles and apparel, tea and spices, IT services, rubber manufactures, Electrical and Electronic Equipment, Fish, Seafood and Aquatic Products, Gems and Jewellery, Processed food and fruitsMain export partners USA 25.29% UK 9.18% India 6.09% Germany 5.75% Italy 5.35% (2020)[16] Imports $21.480 billion (2025)[4]Import goodsMineral fuels including petroleum product (12.3%)Machinery including computers (9%)Electrical machinery, equipment Vehicles (7.1%)Textile fabric (5%)Plastics (3.7%)Cotton (3.3%)Heavy metals (3%)Ships and boats (2.8%)Iron, steel, aluminium (2.8%)Main import partners China 22.96% India 19.30% UAE 5.57% Malaysia 4.08% Singapore 3.96% (2020)[16] FDI stock US$13.05 Billion (2019)[17] Abroad: NA[18] Current account $1.719 Billion (2025)[4] +1.6% of GDP[4] Gross external debt $37.6 Billion (34.6% of GDP) (2025)[4]Public financesGovernment debt $99.6 Billion (91.6% of GDP)(2025)[4]Foreign reserves $7.2 billion (February 2026)[19] Budget balance− 5.1% (of GDP) (2026)[20]RevenuesRs 5,305 Billion (2026 est...
Currency pressure returns as Sri Lankan rupee slips past Rs.324 against ...
The Sri Lankan rupee weakened beyond the Rs.324 mark against the US dollar yesterday for the first time in more than two years, raising fresh concerns over the country's fragile external balance ...
Sri Lanka's only business publication | Daily FT
Latest news, analysis and opinions from the Daily FT, Sri Lanka's only national business newspaper.
