Business Environment in Sri Lanka
Business environment in Sri Lanka are getting better day by day. The recent development of Sri Lanka economy opens many business opportunities. As a result, the rise of foreign direct investments is rising in the country. However, this article discusses about the past and recent economic condition of Sri Lanka.
Sri Lanka's per capita gross domestic product is 4,073 (2017) US dollars and a country with a median average of around 21.4 million people. After the 30-year civil war that ended in 2009, the Sri Lanka economy grew by an average of 5.8 percent in 2010-2017, reflecting a peaceful dividend and a strong political reputation for recovery and growth; despite signs of slowing down in recent years.
The economy is concentrated mainly on urban economy, which is oriented towards the production and services of the rural economy. The country has made significant progress in socio-economic indicators and human development.
Social indicators are one of the highest indicators in South Asia and can be compared to middle-income countries. Economic growth has grown to the overall welfare and the national poverty rate has dropped from 15.3% in 2006/07 to 4.1% in 2016.
Extreme poverty is rarely seen and accumulates in some geographical pockets; However, relatively high proportion of the population is slightly higher than the poverty level.
The country has exceeded its targets for achieving the 2015 MDGs and occupied 73rd place in the 2015 HDI.
Sri Lanka Recent Economic Developments
Drought conditions throughout the country continue to affect macroeconomic outcomes. In the first half of 2018, the economy should be 3.3 percent in 2016, at least for 16 years. 3. In the first half of 2018, agriculture and related sectors are expected to be restored in relatively favorable terms. However, the ongoing drought episode since the beginning of the third quarter of 2018 has affected more than 900,000 people in 18 districts.
Growth in agricultural production output in the first quarter of 2018 led to favorable inflation. The favorable inflation forecast of the Central Bank resulted in a decrease in interest rates in April, while the total volume of cash loans.
No comments