Sri Lanka Country Profile
General Information
Population
total: 21,982,608
male: 10,642,043
female: 11,340,565
Ethnic groups
Sinhalese 74.9%
Sri Lankan
Tamil 11.2%
Sri Lankan Moors 9.2%
Indian Tamil 4.2%
other 0.5%
Languages
Sinhala (official) 87%,
Tamil (official) 28.5%,
English 23.8%
Religions
Buddhist (official) 70.2%
Hindu 12.6% Muslim 9.7%
Roman Catholic 6.1%
Christian 1.3%,
Population distribution
The population is primarily concentrated within a broad wet zone in the southwest, urban centres along the eastern coast, and on the Jaffna Peninsula in the north. [1]
Political Context
Government type: Presidential Republic
Capital: Colombo (commercial capital), Sri Jayewardenepura Kotte (legislative capital)
Administrative divisions: 9 provinces; Central, Eastern, North Central, Northern, North Western, Sabaragamuwa, Southern, Uva, Western.
Executive branch
Chief of state: President Anura Kumara Dissanayake (since 23 September 2024) Head of government: President Anura Kumara Dissanayake (since 23 September 2024)
Cabinet: Cabinet appointed by the president in consultation with the prime minister
Elections/appointments: The president is directly elected by preferential majority popular vote for a 5-year term (eligible for a second term); election last held on 21 September 2024 election results:
2024: Anura Kumara Dissanayake elected president (21st of September), percent of vote - Anura Kumara Dissanayake(NPP) 41.1%, Sajith Premadasa(SJB) 32.7%, Ranil Wickremesinghe(IND) 17.3%
2022: Ranil WICKREMESINGHE elected president by Parliament on 20 July 2022; Parliament vote - WICKREMESINGHE (UNP) 134, Dullas ALAHAPPERUMA (SLPP) 82
2019: Gotabaya RAJAPAKSA elected president; percent of vote - Gotabaya RAJAPAKSA (SLPP) 52.2%, Sajith PREMADASA (UNP) 42%, other 5.8% Legislative branch
Description: unicameral Parliament (225 seats; 196 members directly elected in multi-seat district constituencies by proportional representation vote using a preferential method in which voters select 3 candidates in order of preference; remaining 29 seats, referred to as the "national list" are allocated by each party secretary according to the island-wide proportional vote the party obtains; members serve 5-year terms)
Elections: last held on 5 August 2020 (next to be held in August 2025)
Election Results: percent of vote by party/coalition - SLFPA 59.1%, SJB 23.9%, JVP 3.8%, TNA 2.8%, UNP 2.2%, TNPF 0.6%, EPDP 0.5%, other 7.1%; seats by party/coalition - SLFPA 145, SJB 54, TNA 10, JVP 3, other 13; composition- men 213, women 12, percentage women 5.3%
Judicial branch
Highest court: Supreme Court of the Republic (consists of the chief justice and 9 justices); note - the court has exclusive jurisdiction to review legislation Judge selection and term of office: chief justice nominated by the Constitutional Council (CC), a 9-member high-level advisory body, and appointed by the president; other justices nominated by the CC and appointed by the president on the advice of the chief justice; all justices can serve until age 65 Subordinate courts: Court of Appeals; High Courts; Magistrates' Courts; municipal and primary Courts.
Parliamentary registered parties
Sri Lanka People's Freedom Alliance (SLPFA) Samagi Jana Balawegaya (SJB) Supreme Lanka Coalition (ULS)
Tamil National Alliance (TNA) Democratic Tamil National Alliance (DTNA) National People's Power (NPP) Tamil National People's Front (TNPF) Tamil People's National Alliance (TPNA) [2]
Economic Overview
Real GDP (purchasing power parity) $287.132 billion (2023 est.) $293.885 billion (2022 est.) $317.188 billion (2021 est.)
Real GDP growth rate -2.3% (2023 est.) -7.35% (2022 est.) -4.21% (2021 est.)
Agricultural products: rice, coconuts, plantains, tea, sugarcane, milk, cassava, fibre crops, maize. Industries: processing of rubber, tea, coconuts, tobacco and other agricultural commodities; tourism; clothing and textiles; mining Industrial production growth rate: 9.23% (2023 est.) Labor force: 8.707 million.
Unemployment rate: 6.36% (2023 est.) 6.33% (2022 est.) 5.26% (2021 est.) source Economy in Context The growth prospects for the economy depend on effective debt restructuring and ongoing structural reforms.
While fiscal adjustments aimed at increasing revenue may negatively impact disposable incomes and demand in the short term, a modest recovery is expected, though it won't significantly alleviate the welfare losses from the crisis.
Poverty rates are projected to stay above 22% until 2026. Inflation may rise slightly due to new revenue measures and diminishing base effects, although it is expected to remain manageable in the medium term. The current account is projected to stay in surplus, supported by slow import growth and recovering tourism and remittances.
Despite a declining primary deficit, high-interest payments will keep the overall fiscal balance elevated in 2024. Recent economic data shows a 2.3% contraction in 2023, with a rebound in late-year growth driven by tourism, though sectors like construction and manufacturing struggled.
Inflation decreased to single digits in mid-2023 but has begun to rise again due to increased food and utility prices. Labour force participation has fallen, and many households face food insecurity and adopt risky financial coping strategies. Following a period of monetary tightening, the central bank cut policy rates significantly, improving liquidity and lowering government borrowing costs, while private sector credit has been recovering.
For the first time since 1977, the current account posted a surplus, aided by strong remittances and tourism. Challenges remain significant, including the aftermath of a severe economic crisis in 2022 marked by high inflation and currency depreciation, leading to a spike in poverty and food insecurity.
Structural reforms have been implemented, including utility pricing adjustments and new revenue measures, which, while stabilising the economy, have strained household finances. Domestic debt restructuring was completed in September 2023, with ongoing negotiations with external creditors and recent agreements with the IMF signalling progress in reform efforts. [3]
International Political Context
1. Geopolitical Importance Strategic Location:
Sri Lanka is positioned near critical shipping lanes, making it a key player in maritime trade routes connecting Asia, the Middle East, and Europe. Its location is vital for global trade and security, which attracts interest from major powers like India, China, the United States, and Japan.
Indian Ocean Region (IOR): As a nation within the IOR, Sri Lanka is a member of regional organizations like the Indian Ocean Rim Association (IORA). Its proximity to India also makes it a critical player in South Asian regional politics.
2. Relations with Major Powers
India: Historically, India has played a significant role in Sri Lanka’s domestic and foreign policy. The relationship is complex, especially due to India's involvement in the Sri Lankan Civil War (1983-2009) and its concerns about Tamil populations in both countries.
India continues to be a dominant influence in Sri Lanka’s foreign policy, offering developmental assistance, investment, and regional security cooperation. India is also keen to counter China's growing influence in Sri Lanka.
China: Sri Lanka has increasingly aligned itself with China, especially through the Belt and Road Initiative (BRI). China has invested heavily in infrastructure projects, such as the Hambantota Port and the Colombo Port City.
This growing relationship has led to concerns about "debt-trap diplomacy," where Chinese loans burden Sri Lanka’s economy, leading to increased Chinese influence over domestic affairs. The leasing of Hambantota Port to a Chinese company for 99 years has been a symbol of this influence.
United States: The U.S. sees Sri Lanka as a strategic partner in its Indo-Pacific strategy, focusing on maintaining a free and open Indo-Pacific. While military cooperation and economic ties have been developed, Sri Lanka’s growing alignment with China has strained relations with Washington at times. The U.S. also provides aid for governance reforms and human rights improvements.
Japan: Japan has maintained a consistent relationship with Sri Lanka, offering development assistance and loans for infrastructure projects. Japan's engagement is also part of its broader Indo-Pacific strategy, aiming to balance China’s growing influence.
3. Economic Diplomacy
IMF and Financial Aid: Sri Lanka has sought financial assistance from international institutions, including the International Monetary Fund (IMF), to stabilise its economy, especially following the 2022 economic crisis marked by high inflation, fuel shortages, and debt issues. International financial institutions continue to monitor Sri Lanka's economic reforms and fiscal discipline as part of bailout agreements.
Trade and Investment: Sri Lanka’s international economic diplomacy is focused on attracting foreign direct investment (FDI), particularly in sectors like tourism, infrastructure, and manufacturing. Trade agreements with countries like India (Indo-Lanka Free Trade Agreement) and negotiations with others, including China, are crucial for its economic growth.
4. Regional Organisations
SAARC: Sri Lanka is a member of the South Asian Association for Regional Cooperation (SAARC), though the organisation has been somewhat inactive due to tensions between India and Pakistan. Nevertheless, SAARC provides Sri Lanka with a platform for regional engagement.
BIMSTEC: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is another regional grouping where Sri Lanka plays an active role. It connects South Asia with Southeast Asia and focuses on economic and security cooperation.
