Sri Lanka’s free-market economy was worth $84 billion in nominal GDP in 2019 and $296.959 billion in purchasing power parity terms (PPP). From 2003 to 2012, the country grew at a rate of 6.4 percent per year, much above its regional peers. The growth of non-tradable sectors fueled this expansion, which the World Bank cautioned was both unsustainable and unequal. Since then, growth has slowed. Sri Lanka was reclassified as a lower middle income country by the World Bank in 2019 with an income per capita of 13,620 PPP Dollars or 3,852 nominal US dollars, down from an upper middle income position previously.
Sri Lanka has achieved the Millennium Development Goal (MDG) of halving severe poverty and is on track to achieve the majority of the other MDGs, surpassing other South Asian nations. By 2016, Sri Lanka’s poverty headcount index had risen to 4.1 percent. Sri Lanka has begun to focus on long-term strategic and structural development concerns since the end of the three-decade-long Sri Lankan Civil War. It aspires to become a country of the upper middle class. Sri Lanka also has issues with social inclusion, governance, and long-term viability.
In 2019, services contributed up 58.2 percent of the Sri Lankan economy, up from 54.6 percent in 2010, industry 27.4%, up from 26.4 percent a decade ago, and agriculture 7.4 percent. Though the agricultural export market is competitive, technical advancements have been slow to reach the protected domestic sector. Sri Lanka is the world’s largest producer of solid and industrial tyres, and its apparel industry is progressing up the value chain. However, the rise in trade protection over the last decade has raised concerns about a return to inward-looking policies.
Ports and airports are assisting the country’s newfound status as a maritime and aviation hub in terms of services. The Port of Colombo is South Asia’s largest transshipment hub. There is a burgeoning software and information technology sector that is both competitive and global in nature. Tourism is a rapidly growing industry. Sri Lanka was awarded the finest destination to visit in 2019 by Lonely Planet, and the best island by Travel+Leisure. The United States, the United Kingdom, and India are Sri Lanka’s biggest export destinations. The biggest import partners are China, India, and the United Arab Emirates.
Concerns over Sri Lanka’s slowing GDP, money printing, and government debt have resulted in a succession of sovereign rating downgrades since the outbreak of the COVID-19 pandemic. Import controls and import substitution have become more severe as a result of the increased monetary instability caused by debt monetization. Sri Lanka has been rated one of the top ten countries in the world for its COVID-19 pandemic response. In 2021, the Sri Lankan government announced the country’s biggest economic crisis in 73 years.
What is Sri Lanka’s GDP forecast for 2021?
According to Trading Economics global macro models and analysts, Sri Lanka’s GDP is expected to reach 81.00 USD billion by the end of 2021. According to our econometric models, Sri Lanka’s GDP will trend around 83.00 USD billion in 2022 and 88.00 USD billion in 2023 in the long run.
Why is Sri Lanka so impoverished?
Sri Lanka is an island nation with a population of 21.7 million people. During the months of December to March, however, that number skyrockets as tourists throng to the island to enjoy its enticing beaches and hilly landscape. The island nation may resemble a tropical paradise, but poverty remains a major worry in Sri Lanka, which is still recovering from a 30-year civil conflict that lasted from 1983 to 2009. Sri Lanka has spent the last decade working to rebuild its economy and restructure its wealth distribution. Although the country has achieved tremendous progress, there are still many major concerns to address in terms of poverty and the rehabilitation process. Here are five facts regarding Sri Lankan poverty.
Facts About Poverty in Sri Lanka
- Economic Development and Living Standards: Sri Lanka’s poverty rate fell from 22.7 percent in 2002 to 6.1 percent in 2013 (excluding the Northern and Eastern provinces). Unfortunately, the country’s living conditions have not improved at the same rate. In 2013, about 45 percent of the population made ends meet on less than $5 per day. The Sri Lankan economy, on the other hand, has risen at a rate of 5.6 percent per year for the past ten years. Sri Lankan residents’ disposable income is increasing as a result of this strong growth rate, which is expanding the middle class, improving purchasing power, and enlarging the middle class. As a result, experts predict that Sri Lanka’s living standards will increase in the next years.
- Rural vs. Urban Regions: Sri Lanka has a large rural sector, resulting in unequal wealth distribution across the country. In 2013, rural areas housed 75 percent of Sri Lanka’s overall population and more than 85 percent of the country’s poor. The wealth of the country is concentrated mostly in metropolitan areas, limiting impoverished, rural populations’ access to resources and producing a linked pattern of economic inequality. Following the end of the Sri Lankan Civil War in 2009, the country began to rebuild its economy, focusing on manufacturing and key services. This emphasis promotes the growth of a city-based economy, which will help to distribute resources and balance out apparent economic disparities.
- The Agriculture Industry: The agriculture industry employs almost 30% of Sri Lanka’s workforce and approximately 50% of the employed poor. When compared to other industries, the agriculture industry often pays less and offers less prospects for advancement. As a result, poor Sri Lankans in the agriculture sector find it difficult to enhance their annual income and social status, sustaining the country’s rural poverty patches. Urbanization helps to combat this issue by allowing rural residents to access resources and opportunities that were previously only available in Sri Lanka’s crowded metropolis. This structural shift provides a broader range of job and leisure options, as well as encouraging poorer individuals working in agriculture to engage in more productive industries, so breaking the poverty cycle in Sri Lanka.
- Indicators of Development: Malnutrition and climate change are two other socioeconomic challenges that have a direct impact on Sri Lanka’s poverty rate. The World Food Programme estimates that 22% of Sri Lankans are undernourished or malnourished, implying that many citizens are deficient in vitamins and minerals. Climate change is also having a negative impact on Sri Lanka’s poverty rate, as extreme floods and droughts undermine food security and restrict access to safe drinking water. The Sri Lankan government teamed up with the World Food Programme to give “technical and policy support to create national capacity to secure access to food, reduce malnutrition, and enhance the productivity and incomes of smallholder farmers” to tackle these concerns. In addition, the Sri Lankan government has made tremendous progress in reducing maternal mortality and expanding elementary school availability. In recent years, the number of skilled practitioners attending births in Sri Lanka has expanded considerably. As a result, the maternal mortality rate in Sri Lanka has dropped from 500-600 maternal deaths per 100,000 live births in 2010 to 60 maternal deaths per 100,000 live births in 2020. Education is a top priority for the Sri Lankan government, as it is one of the most important components in poverty alleviation. In Sri Lanka, 99.08 percent of children aged 5 to 14 years attend primary school.
- COVID-19: According to predictions, COVID-19 will cause a 25% decline in exports (or $750 million) in Sri Lanka. Sri Lanka’s export revenues, consumption, and investment have all been hit hard by the global pandemic. As a result, major export businesses (apparel, tea, and rubber) have been forced to make drastic job and wage cuts. Job performance and tourism are still being hampered by social distancing regulations, posing a danger to the economy’s stability and the national poverty rate. While the country prepares for the economic consequences, the government is concentrating on containing the virus’s spread. To slow the spread of the coronavirus, the Sri Lankan government imposed a 24-hour curfew, grounded all international flights, and boosted coronavirus testing in April 2020. These approaches aided in the faster and simpler detection of coronavirus cases, preventing thousands of additional deaths and limiting the economic and social consequences.
While these five facts about poverty in Sri Lanka demonstrate the country’s difficulties, it has achieved tremendous progress in reducing poverty. The country should be able to continue to reduce its poverty rate by working alone and with NGOs such as the World Food Programme.
Is India more impoverished than Sri Lanka?
“What are the true distinctions between Sri Lanka and India?” many people question. I’ll provide you 7 Reasons Why Sri Lanka Isn’t India in this blog post.
Numerous people are familiar with India, but far fewer are familiar with Sri Lanka or the many pearls it has to offer that are distinct from India.
Consider Sri Lanka a hidden gem that is often neglected by others due to its tiny size and lack of global recognition. Sri Lanka’s past may have been marred by conflict, war, hardship, and adversity; nevertheless, it is a new day now, and “Lonely Planet” has just named Sri Lanka the top tourist destination in 2019. Conflicts have ceased in recent years, and the tourism business has exploded.
Every year, new hotels, excursions, and attractions are renovated and opened. Sri Lanka, in comparison to India, has a bright, quickly improving future that will continue to expand, attracting more tourists from all over the world.
This hidden gem is now accessible, and there are numerous reasons why this area is one of the most popular vacation destinations. We hope you will take the time to discover this hidden gem in the near future.
When you think of India, you might picture a vibrantly colored country with spicy food in the Southeast Asian region. What comes to mind when you think about Sri Lanka?
Are you familiar with Sri Lanka’s location? Do you realize how unique it is? What does Sri Lanka have a reputation for? What makes you desire to go to Sri Lanka?
Check out my 7 Reasons Why Sri Lanka Isn’t India below.
and start planning your next incredible trip to the “Pearl.”
It is an Island
One of the most significant geographical distinctions is that Sri Lanka is an island, whereas India is not. Sri Lanka is known as the “Pearl of the Indian Ocean.” Sri Lanka, like a pearl gleaming in the sunlight, is an island that outshines India in so many ways.
Despite its size, the island is substantially smaller than India. This gives visitors the incredible opportunity to experience so much of a country in such a short length of time. When comparing Sri Lanka to India, the contrast is stark.
Tourists are interested in learning when the optimum time is to travel to their places. (See “The Best Times to Visit Sri Lanka” on our site.) Because Sri Lanka is an island, it is possible to enjoy a wonderful beach at any time of year. When the East Coast is good, but the West Coast is not, and vice versa, there are occasions when the East Coast is good but the West Coast is not. This means that visiting Sri Lanka at any time is a terrific idea!
They are two different countries.
This is a self-evident geographical fact, but many people have never heard of Sri Lanka. It was just a few years ago that I first discovered about this magnificent country. Due to its huge size and global impact, Sri Lanka can be missed while India is just above it, despite 30 kilometers of ocean separating the two countries at times.
Sri Lanka is a sovereign state in its own right. They are a distinct people, having their own national language, cuisine, and culture. If you visit Sri Lanka, make sure to order Kothu, a dish that is absolutely unique to the country. (See our “Sri Lanka Food Guide” for more information.)
Although India has a wide variety of curries, Sri Lanka has its own distinct curries that are only available on the island. Mango and Jack Fruit Curry is an example. Both fruits have savory and sweet qualities, depending on the taste and preference of the individual consuming the curry.
India’s most important industry is agriculture. You might be surprised to find that tourism is Sri Lanka’s primary sector. Don’t miss out on an opportunity to visit one of the world’s most distinctive islands!
In addition, the currency is different. The Lanka Rupee is used in Sri Lanka, while the Indian Rupee is used in India.
Because of the favorable exchange rate, your dollar will go a long way here.
Sri Lanka is cleaner and has a smaller population.
Apart from the fact that India has a population of one billion people and Sri Lanka has a population of 24 million, Sri Lankans are proud of their pearl island home. Although Sri Lanka lacks India’s riches and natural resources, the streets, cities, and countryside are far cleaner.
If you look attentively, you’ll notice a system and structure that preserves this lovely island in such good shape. When a few palm tree leaves or blossoms fall, there will be an Uncle or Auntie meticulously sweeping the yard. You’ll notice small elements that demonstrate their concern for the island’s cleanliness.
There are several rural sites that tourists enjoy not far outside of the populous city of Colombo. The Hill Country Tea Plantations, which provide crisp air, a true glimpse of the local hill country people, and the best tea in the world, are one of our favorites.
Despite having few resources, the poverty rate in Sri Lanka is low. There are no slums or unsafe places.
When it comes to clean air, Sri Lanka outperforms India in terms of pollution levels and air quality. A cleaner air environment is created when there are fewer individuals in a packed place.
Hospitality at its finest.
After visiting a number of countries, I’d venture to say that Sri Lanka is one of the most welcoming and friendliest places I’ve ever been. People go above and above to help, regardless of the situation.
This hospitality is not only extended to visitors, but it is also reflected in the culture.
You will be greeted with enthusiasm and thanks with a welcoming smile around every corner. Sri Lankans are extremely proud of their homeland and truly want you to enjoy yourself.
Everyone, from the Tour Guide to the Cleaning Lady, will lend a hand when needed. Gentle is a word I’ve heard used to characterize Sri Lankans. Gentle is an apt term to describe these great people.
Sri Lankan drivers are responsible and courteous. With the exception of buses, pedestrians have the right of way. Buses do not stop for pedestrians since they have a tight schedule to adhere to!
Uber drivers are extremely friendly, and you must ride with a Sri Lankan tuk-tuk driver before leaving the country!
Tuk-tuks will gladly transport you wherever you want to go, and their drivers are usually silent and focused on getting you to your destination as fast as possible.
If you look closely, workers will place their left hand on top of their right hand as a symbol of humility, thanks, and service when giving change or serving afternoon tea.
Cultural Diversity
Many Buddhists, Hindus, and Muslims live in Sri Lanka. If you’re seeking for the most cultural attractions in a small region, Sri Lanka is the place to go. Buddhist temples piqued your interest? Hindu temples and mosques with intricate carvings? Sri Lanka is the only spot where you may view them all.
The majestic temples are timeless, and the diverse cultural attractions provide plenty to see. The “Tooth Temple” in Kandy, for example, is supposed to possess a tooth of the Buddha. Another location is “Adams Peak,” which Christians and Muslims believe is the location where the first man, Adam, journeyed after leaving the Garden of Eden. Buddhists believe this is the location of a Buddha footprint. (For further information on Adams Peak, see the article “5 Adventurous Excursions.”)
A diverse range of temples means a diverse range of culture and experience. Apart from religious features of the culture, you will notice that individuals differ from one location to the next.
It’s incredible to see Tea Pickers from the Hill Country, Fishermen from the Sea, and Rubber Harvesters from the Plains all in close proximity to one another. Every city is unique, with a wide range of cultural experiences to offer.
Sri Lanka is also unusual in that it has a long and illustrious colonial history. Sri Lanka only recently gained independence from the United Kingdom in 1948. The Queens of England like Ceylon Tea, and it’s no surprise that Sri Lanka is the world’s largest tea exporter.
When you visit Sri Lanka, you can take a cool crisp air to the hill region, sip a hot cup of tea, and learn about the country’s rich history and culture.
Better Beaches and Unique Wildlife.
Beautiful beaches are a must-have for any pearl in the Indian Ocean. Sri Lanka, which is only a short distance from the Maldives, is likewise known for its beautiful beaches. Do you want to spend the most of your time on the beach? You’ve come to the right place!
There will be no pollution on the beaches, and the sand will be clean of rubbish. In the turquoise seas in the south, three-foot-wide sea turtles swim frantically. Hikadua’s enigmatic, yet mesmerizing purple sand is a short distance away.
While India is home to a diverse range of wildlife, Sri Lanka is home to thousands of unique animal species. Many wildlife shows have featured Sri Lanka, and one documentary depicts an entire kingdom of monkeys with their own unique society. Sri Lanka is home to 452 bird species, the majority of which are vibrantly colored and unlike any other bird you’ve ever seen.
The Sri Lankan Asian Elephant is found all throughout the world, not just in Sri Lanka. Elephants can be seen parading around the streets of some cities after taking a bath in the river in the afternoon. What could be better than shopping for souvenirs while watching a herd of elephants pass by?
Beaches, Tea Hills, Wild Plains, and Mountains. All in one place!
Despite its tiny size, Sri Lanka offers a diverse range of activities. Sri Lanka is the place to go if you want to spend less time and energy traveling and more time viewing different places, whereas India would be considerably more difficult.
Are you a fan of the city? Visit Colombo for some delectable cuisine and to see the bustling parks teeming with people. Colombo is also a fantastic destination to go shopping. Colombo has something for everyone, from high-end luxury to low-cost bargains.
If you like the plains, travel to Sigiriya, where the weather is a little cooler and you may combine hiking and history at Sigiriya Rock in one day. Take a Sigiriya Safari and you’ll be shocked at what you find. We saw several various species of monkeys, birds, and a large family of elephants while on our safari!
Beaches aplenty! Sri Lanka not only has beaches, but several distinct sorts of beaches to pick from. It depends on where you are, but there are possibilities for you on Sri Lankan beaches.
Travel south to Unawatuna to enjoy the turquoise waters and see the old Dutch Galle Fort while you’re there. Take in the beautiful view of the ocean waves and rock reefs from a palm tree swing.
Haputale’s highlands are a hazy dream, complete with tea plantations and fireplaces. While the temperature rarely drops below 50 degrees in the winter, it is one of the most tranquil and lovely places to visit. The sunrises will take your breath away when the sun rises above the woods.
In Nuwara Eliya, World’s End offers a long journey through the hills. You can hire a guide to accompany you on this hike and observe elk and other wildlife.
If you want more challenging hikes, Adam’s Peak provides a spectacular vista as well as a taste of culture, as one of the top Buddhist temples can be found at the summit.
We hope that after reading this blog post, you will have a better understanding of why Sri Lanka is not India.
We are confident that you will fall in love with this small island nation and its people.
Sri Lanka should be on your next bucket list visit, with its broad selection of beaches and hiking paths on Adam Peak. After all, where else in the world can you go to the beach and the mountains in the same day?
Is Sri Lanka a wealthier country than Pakistan?
Pakistan ranked 41st in the world with a GDP of $314.6 billion dollars, whereas Sri Lanka ranked 65th with $88.9 billion dollars. Pakistan and Sri Lanka were rated 40th and 51st in terms of GDP 5-year average growth and GDP per capita, respectively.
Is Sri Lanka more prosperous than the Philippines?
increase your earnings by 53.6 percent As of 2017, the Philippines’ GDP per capita was $8,400, while Sri Lanka’s GDP per capita was $12,900.