Sri Lanka Economy stresses on the export of crops like tea, coconut and rubber, which are chief plantation crops. The other notable export products of Sri Lanka are coffee, cinnamon, cardamom, cloves, pepper, citronella, nutmeg and tobacco. The country produces rice, fruits and vegetables for the consumption of local inhabitants. Sri Lanka Economy have gained immensely by exporting amorphous graphite, which constitutes the main mineral industry. Sri Lanka Economy makes commendable profits from petroleum refining and mining of precious, semi precious gems, clays, limestones and mineral sands. The fast flowing rivers have the potential for hydroelectric power development and thereby can contribute towards Sri Lanka Economy.
Sri Lanka Economy Contributors:
Sri Lanka Economy thrives because of the country's industries, which hover over agricultural products processing, with emphasis given on the money crops such as rubber, coconut and tea. A notable feature of Sri Lanka Economy is the export of tea as 'Ceylon Tea', that is appreciated throughout the world. The original tea estates belonged to the British but now they are owned by the government.
The apparel industry has noticeably shaped Sri Lanka Economy along with other industries like porcelain and ceramic.
Sri Lanka Export
Sri Lanka Export in 2006 amounted to US $ 7.076 billion. Tea, spices, rubber products, gems, fish, textile and apparels, and coconut products constitute Sri Lankan Export.
Sri Lanka Exports mainly to USA, United Kingdom, India and Germany. 31.3% of Sri Lanka Export goes to USA, followed by 12.2% to the United Kingdom, 8.9% to India, and 4.3% to Germany.
Tea Export
Tea constitutes a vital Sri Lanka Export item. Sri Lanka has been a consistent exporter of tea over the past few years. In the year 2004 Sri Lanka exported tea worth US $ 740,922 and in 2005 Sri Lankan Export figure reached US $ 810,267.
Spices
Spices is an important export item from Sri Lanka. In 2004 Sri Lanka exported spices worth US $ 76,323. The corresponding figure for 2005 was US $ 97, 593.
Rubber Products
Rubber product is a significant Export of Sri Lanka. Rubber tires and tubes are the main rubber products being exported from Sri Lanka. In 2004 Rubber tires and tubes of value US $ 161,547 was exported. This was followed in 2005 by an export of US $ 258,828. The corresponding figures for Other Rubber Articles were US $ 31,227 and US $ 33,649 respectively.
Natural Rubber also is an important constituent of Sri Lankan Goods Exported. The figures for 2004 and 2005 were respectively US $ 50, 938 and US $ 46,871.
Fresh Fish
Sri Lanka Export also features fresh fish. Fresh fish worth US $ 51,672 in 2004, followed by US $ 70,508 in 2005 were exported from Sri Lanka.
Textiles & Apparels
Articles of Apparel helped earn US $ 652,166 from Sri Lanka Exports. The figure for 2005 was US $ 664,215. The export of Clothing Accessories in the same period amounted to US $ 122,119 and US $ 122,334 respectively. Articles of apparel other than textiles earned US $ 119,230 in 2004, and US $ 127,732 in 2005 for Sri Lanka Exports.
Sri Lanka Real Estate
Sri Lanka Real Estate business is flourishing. Real Estate is also a high yielding Investment opportunity. Real Estate Business in Sri Lanka is primarily privatized.
Sri Lanka Real Estate business is spread across Houses and Bungalows, Apartments, Farms, Factories, Prime Plots, Cultivable land, Commercial Buildings, Hotels and Plantations. Colombo, Kandy Up Country, Negombo, Bentota, Galle and Tangalle are the main cities where Sri Lankan Real Estate Business is concentrated. These cities are are located in Southern and South-Western regions of the Sri Lankan island.
In Sri Lankan Real Estate the unit of measurement used for measuring area is 'Perch'.
1 perch = 25 sq. m
1 acre = 160 perches = 4000 sq. m.
1 hectare = 2.5 acres
Sri Lanka Property
Sri Lanka Property includes houses, prime lands, commercial plots, factories, guest houses and hotels, hospitals, plantations, tea gardens, vegetable farms and farm houses, and farming land.
Sri Lankan Property business is done through property agents primarily. Individual Brokers also engage in property business but to a limited extent. These properties can either be bought out or taken on lease. The unit of land measurement in Sri Lanka Property dealings is perch. 1 Perch equals to 25 square meters.
Commercial Property
Sri Lanka Commercial Property would include offices, warehouses, shops, and factories. A few illustrations will help to understand Sri Lanka PropertyBusiness.
A 80 perch land on Colombo - Kandy highway with 60 ampere electricity connection, water well, shed and an air-conditioned chamber is being offered on a lease rental for LNR 150,000/-
A three storied commercial building with a total floor area of 772 square feet on Bandarawela - Badulla highway has been priced at LNR 765,000/- for outright sale.
A commercial building on 40 perch land on Puttalam - Colombo main road has been priced at LNR 9,900,000 for sale.
Plantation
Plantation is another form of Property in Sri Lanka. Rubber and Coconut Plantations are two profit making investments in Sri Lanka. They are fairly large in number particularly in the South and South Western regions.
A typical plantation in Delwita, Kurunegala spreads over 23 acres and 60 perches. It produces coconuts, banana, mango, pepper, cashew, copra, and coffee. The plantation has main line water supply and a well. The plantation also has a two bedroomed house. The Selling price of this Sri Lankan Property is LNR 15,000,000/-
Houses
Houses comprise a sizable section of all Sri Lanka Property Dealings. Both old and new houses are bought and sold. An old two storied house in Kandy on 19 perches having 5 bedrooms, 4 wash rooms, living room, kitchen, servants quarters, has been priced at LNR 100,000,000/-
Factory
A garment factory in Mount Lavinia with a floor area of 7500 sq. ft, with separate quarters for the workers and the manager has been offered for LNR 160,000,000/-
Sri Lanka Bank
Sri Lanka Bank implies Commercial Banking in Sri Lanka. Commercial Banking in Sri Lanka is spread across domestic as well as multi national banking corporations.
Commercial Banking in Sri Lanka is done by both multi national and domestic banks. Among the Sri Lanka Domestic Banks there
Bank of Ceylon, Bankers Trust Company, Commercial bank of Ceylon Limited, Development Finance Corporation of Ceylon, Muslim Commercial Bank Limited, Overseas Trust Bank Limited, People's Bank, Sampath Bank Limited, Union Bank Of Colombo Limited, Seylan Bank Limited, Investment and Credit Bank Limited, Lanka Orix Leasing Company Limited, National Development Bank.
The Sri Lanka Multi National Banks that have commercial operations in Sri Lanka include:
ABN Amro Bank, American Express Bank Limited, Bank of America, Citibank N. A., Deutsche Bank A. G., Standard Chartered Bank, Dubai Bank Limited, Emirates Bank International Limited, Habib Bank A. G. Zurich, Habib Bank Limited, Hatton National Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Indian Bank, Indian Overseas Bank, International Bank for Reconstruction and Development (World Bank), Korea Exchange Bank, Mashreq Bank PSC, Pan Asia Bank Limited, Public Bank Berhad, State Bank of India.
Sri Lanka Banking does all normal commercial operations. The commercial operations performed by Sri Lankan Banks are:
- Deposit mobilization,
- Investment banking,
- Bill discounting,
- Asset management
- Foreign Exchange Trading
- Letter of Credit Issuance
- Loan Dispersal
Central Bank of Sri Lanka
Central Bank of Sri Lanka was established under the Monetary Law Act (MLA) 58 in 1950. The Central Bank of Sri Lanka is the apex bank in Sri Lanka.
The Objectives of the Central Bank of Sri Lanka are two pronged:
- Maintenance of a stable financial system
- Maintenance of price and economic stability
In addition to the two objectives The Central Bank of Sri Lanka performs Ancillary Functions, and Agency Functions. The Ancillary function includes Currency Issue and management.
The Agency Functions performed by The Sri Lankan Central Bank may be classified into:
- Public Debt Management
- Foreign Exchange Management
- Employees' Provident Fund Management
- Regional Development
Maintenance of price and economic stability is effected by a sound monetary policy. A sound monetary policy is and its effective usage is the primary concern of The Central Bank of Sri Lanka. Monetary Policy involves the availability of money to the public. This availability can be effected by changing lending rates, regulating bank reserve ratios, and issuance of bonds.
Financial Policy
The Sri Lankan Central Bank ensures financial stability by regulating commercial banking activities. The Central Bank of Sri Lankadoes this by modifying loan payment periods and loan interest rates, changing insurance rates, regulating provident fund interest rates and the like.
Currency Management
It is the responsibility of the Central Bank of Sri Lanka to make available sufficient currency in the market. It also strives to maintain the quality of the currency notes and coins in circulation. Design, distribution, and protection of currency notes are the responsibility of The Central Bank of Sri Lanka
