Sri Lanka
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Democratic Socialist Republic of Sri Lanka
Geography
Area: 65,610 sq. km. (25,332 sq. mi.); about the size of West
Virginia.
Cities: Capital--Colombo (pop. est. 1.3 million--urban area).
Sri Jayewardenepura-Kotte is the officially designated capital
and is the site of Parliament, but it is currently only an administrative
center. Other cities--Kandy (150,000), Galle (110,000), Jaffna
(100,000).
Terrain: Coastal plains in the northern third of country; hills
and mountains in south-central Sri Lanka rise to more than 2,133
meters (7,000 ft.).
Climate: Tropical. Rainy seasons--light in northeast, fall and
winter, with average rainfall of 50 in.; heavy in southwest, summer
and fall, with average rainfall of 200 in.
People
Nationality: Noun and adjective--Sri Lankan(s).
Population (2003): 19.4 million.
Annual growth rate: 0.08%.
Ethnic groups (2002): Sinhalese (74%), Tamils (18%), Muslims (7%),
others (1%).
Religions: Buddhism, Hinduism, Islam, and Christianity.
Languages: Sinhala and Tamil (official), English.
Education: Years compulsory--to age 14. Primary school attendance--96.5%.
Literacy--91%.
Health: Infant mortality rate--15/1,000. Life expectancy--71 yrs.
(male); 76 yrs. (female).
Work force: 7.2 million.
Government
Type: Republic.
Independence: February 4, 1948.
Constitution: August 31, 1978.
Suffrage: Universal over 18.
Branches: Executive--president, chief of state and head of government,
elected for a 6-year term. Legislative--unicameral 225-member
Parliament. Judicial--Supreme Court, Court of Appeal, High Court,
subordinate courts.
Administrative subdivisions: Nine provinces and 25 administrative
districts. (The northern and eastern provinces, however, have
been technically jointly administered since 1988.)
Political parties: Janatha Vimukthi Peramuna, Jathika Hela Urumaya,
Sri Lanka Freedom Party, Tamil National Alliance, United National
Party, several small Tamil and Muslim parties, and others. The
Sri Lanka Freedom Party and the Janatha Vimukthi Peramuna, along
with several small leftist parties, operate under an umbrella
organization known as the “United People’s Freedom
Alliance.” The United National Party and several other smaller
parties operate as the “United National Front.”
Economy (2003)
GDP: $18.4 billion (est. 2003).
Annual growth rate: 5.9%.
Natural resources: Limestone, graphite, mineral sands, gems, and
phosphate.
Agriculture (20.1% of GDP): Major products--rice, tea, rubber,
coconut, and spices.
Services (53.6% of GDP): Major types--tourism, transport, telecom,
banking and finance.
Industry (26.3% of GDP): Major types--garments and leather goods,
food processing, chemicals, refined petroleum, wood products,
basic metal products, and paper products.
Trade: Exports--$5.1 billion: garments and footwear, tea, rubber
products, jewelry and gems, refined petroleum, and coconuts. Major
markets--U.S. ($1.8 billion), U.K., Germany, Japan, Belgium. Imports--$6.4
billion. Major suppliers--India, Hong Kong, Singapore, Japan,
Taiwan, South Korea, U.K., U.S. ($155 million). [U.S. data]
PEOPLE
The Democratic Socialist Republic of Sri Lanka (formerly known
as Ceylon) is an island in the Indian Ocean about 28 kilometers
(18 mi.) off the southeastern coast of India with a population
of about 19 million. Density is highest in the southwest where
Colombo, the country's main port and industrial center, is located.
The net population growth is about 1.3%. Sri Lanka is ethnically,
linguistically, and religiously diverse.
Sinhalese make up 74% of the population and are concentrated
in the densely populated southwest. Ceylon Tamils, citizens whose
South Indian ancestors have lived on the island for centuries,
total about 12% and live predominantly in the north and east.
Indian Tamils, a distinct ethnic group, represent about 5% of
the population. The British brought them to Sri Lanka in the 19th
century as tea and rubber plantation workers, and they remain
concentrated in the "tea country" of south-central Sri
Lanka. In accordance with a 1964 agreement with India, Sri Lanka
granted citizenship to 230,000 "stateless" Indian Tamils
in 1988. Under the pact, India granted citizenship to the remainder,
some 200,000 of whom now live in India. Another 75,000 Indian
Tamils, who themselves or whose parents once applied for Indian
citizenship, now wish to remain in Sri Lanka. The government has
stated these Tamils will not be forced to return to India, although
they are not technically citizens of Sri Lanka. In October of
2003, an act of Parliament granted citizenship to several thousand
of these “tea estate” Tamils.
Other minorities include Muslims (both Moors and Malays), at
about 7% of the population; Burghers, who are descendants of European
colonists, principally from the Netherlands and the United Kingdom
(U.K.); and aboriginal Veddahs. Most Sinhalese are Buddhist; most
Tamils are Hindu. The majority of Sri Lanka's Muslims practice
Sunni Islam. Sizable minorities of both Sinhalese and Tamils are
Christians, most of whom are Roman Catholic. The 1978 constitution,
while assuring freedom of religion, grants primacy to Buddhism.
Sinhala, an Indo-European language, is the native tongue of the
Sinhalese. Tamils and most Muslims speak Tamil, part of the South
Indian Dravidian linguistic group. Use of English has declined
since independence, but it continues to be spoken by many in the
middle and upper middle classes, particularly in Colombo. The
government is seeking to reverse the decline in the use of English,
mainly for economic but also for political reasons. Both Sinhala
and Tamil are official languages.
HISTORY
The actual origins of the Sinhalese are shrouded in myth. Most
believe they came to Sri Lanka from northern India during the
6th century BC. Buddhism arrived from the subcontinent 300 years
later and spread rapidly. Buddhism and a sophisticated system
of irrigation became the pillars of classical Sinhalese civilization
(200 BC-1200 AD) that flourished in the north-central part of
the island. Invasions from southern India, combined with internecine
strife, pushed Sinhalese kingdoms southward.
The island's contact with the outside world began early. Roman
sailors called the island Taprobane. Arab traders knew it as "Serendip,"
the root of the word "serendipity." Beginning in 1505,
Portuguese traders, in search of cinnamon and other spices, seized
the island's coastal areas and spread Catholicism. The Dutch supplanted
the Portuguese in 1658. Although the British ejected the Dutch
in 1796, Dutch law remains an important part of Sri Lankan jurisprudence.
In 1815, the British defeated the king of Kandy, last of the native
rulers, and created the Crown Colony of Ceylon. They established
a plantation economy based on tea, rubber, and coconuts. In 1931,
the British granted Ceylon limited self-rule and a universal franchise.
Ceylon became independent on February 4, 1948.
Post-Independence Politics
Sri Lankan politics since independence have been strongly democratic.
Two major parties, the United National Party (UNP) and the Sri
Lanka Freedom Party (SLFP), have generally alternated rule.
The UNP ruled first from 1948-56 under three Prime Ministers--D.S.
Senanayake, his son Dudley, and Sir John Kotelawala. The SLFP
ruled from 1956-65, with a short hiatus in 1960, first under S.W.R.D.
Bandaranaike and then, after his assassination in 1959, under
his widow, Sirimavo, the world's first female chief executive
in modern times. Dudley Senanayake and the UNP returned to power
in 1965.
In 1970, Mrs. Bandaranaike again assumed the premiership. A year
later, an insurrection by followers of the Maoist "Janatha
Vimukthi Peramuna" (JVP, or "People's Liberation Front")
broke out. The SLFP government suppressed the revolt and declared
a state of emergency that lasted 6 years.
In 1972, Mrs. Bandaranaike's government introduced a new constitution,
which changed the country's name from Ceylon to Sri Lanka, declared
it a republic, made protection of Buddhism a constitutional principle,
and created a weak president appointed by the prime minister.
Its economic policies during this period were highly socialist
and included the nationalization of large tea and rubber plantations
and other private industries.
The UNP, under J.R. Jayewardene, returned to power in 1977. The
Jayewardene government opened the economy and, in 1978, introduced
a new constitution based on the French model, a key element of
which was the creation of a strong executive presidency. J.R.
Jayewardene was elected President by Parliament in 1978 and by
nationwide election in 1982. In 1982, a national referendum extended
the life of Parliament another 6 years.
The UNP's Ranasinghe Premadasa, Prime Minister in the Jayewardene
government, narrowly defeated Mrs. Bandaranaike (SLFP) in the
1988 presidential elections. The UNP also won an absolute majority
in the 1989 parliamentary elections. Mr. Premadasa was assassinated
on May 1, 1993 by the Liberation Tigers of Tamil Eelam ("LTTE"
or "Tigers"), and was replaced by then-Prime Minister
Dingiri Banda Wijetunga, who appointed Ranil Wickremesinghe Prime
Minister.
The SLFP, the main party in the People's Alliance (PA) coalition,
returned to power in 1994 for the first time in 17 years. The
PA won a plurality in the August 1994 parliamentary elections
and formed a coalition government with Chandrika Bandaranaike
Kumaratunga as Prime Minister. Prime Minister Kumaratunga later
won the November 1994 presidential elections and appointed her
mother (former Prime Minister Sirimavo Bandaranaike) to replace
her as Prime Minister. President Kumaratunga won re-election to
another 6-year term in December 1999. In August 2000, Mrs. Bandaranaike
resigned as Prime Minister for health reasons, and Ratnasiri Wickramanayaka
was appointed to take her place. In December 2001, the UNP assumed
power, led by Prime Minister Ranil Wickremasinghe. Chandrika Kumaratunga
remained as President. In November of 2003, President Kumaratunga
suddenly took control of three key ministries, triggering a serious
cohabitation crisis. In January 2004, the SLFP and the JVP formed
a political grouping known as the United People’s Freedom
Alliance (UPFA). In February, President Kumaratunga dissolved
Parliament and called for fresh elections. In these elections,
which took place in April 2004, the UPFA received 45% of the vote,
with the UNP receiving 37% of the vote. While it did not win enough
seats to command a majority in Parliament, the UPFA was able to
form a government and appoint a cabinet headed by Prime Minister
Mahinda Rajapaksa .
Presidential elections were held in November 2005. Mahinda Rajapaksa
became President, and Ratnasiri Wickramanayake became Prime Minister.
Communal Crisis
Historical divisions continue to have an impact on Sri Lankan
society and politics. From independence, the Tamil minority has
been uneasy with the country's unitary form of government and
apprehensive that the Sinhalese majority would abuse Tamil rights.
Those fears were reinforced when S.W.R.D. Bandaranaike triumphed
in the 1956 elections after appealing to Sinhalese nationalism.
His declaration that Sinhala was the country's official language--an
act felt by Tamils to be a denigration of their own tongue--was
the first in a series of steps over the following decades that
appeared discriminatory to Tamils. Tamils also protested government
educational policies and agriculture programs that encouraged
Sinhalese farmers from the south to move to newly irrigated lands
in the east. The decades following 1956 saw intermittent outbreaks
of communal violence and growing radicalization among Tamil groups.
By the mid-1970s Tamil politicians were moving from support for
federalism to a demand for a separate Tamil state--"Tamil
Eelam"--in northern and eastern Sri Lanka, areas of traditional
Tamil settlement. In the 1977 elections, the Tamil United Liberation
Front (TULF) won all the seats in Tamil areas on a platform of
separatism. Other groups--particularly the Liberation Tigers of
Tamil Eelam (LTTE or Tamil Tigers)--sought an independent state
by force.
In 1983, the death of 13 Sinhalese soldiers at the hands of the
LTTE unleashed the largest outburst of communal violence in the
country's history. Hundreds of Tamils were killed in Colombo and
elsewhere, tens of thousands were left homeless, and more than
100,000 fled to south India. The north and east became the scene
of bloodshed as security forces attempted to suppress the LTTE
and other militant groups. Terrorist incidents occurred in Colombo
and other cities. Each side in the conflict accused the other
of violating human rights. The conflict assumed an international
dimension when the Sri Lankan Government accused India of supporting
the Tamil insurgents.
Indian Peacekeeping
By mid-1987, India intervened in the conflict by air-dropping
supplies to prevent what it felt was harsh treatment and starvation
of the Tamil population in the Jaffna Peninsula caused by an economic
blockade by Colombo. Under a July 29, 1987, accord (the Indo-Lanka
Accord) signed by Indian Prime Minister Rajiv Gandhi and President
Jayewardene, the Sri Lankan Government made a number of concessions
to Tamil demands, which included devolution of power to the provinces,
merger--subject to later referendum--of the northern and eastern
provinces, and official status for the Tamil language. India agreed
to establish order in the north and east with an Indian Peace-Keeping
Force (IPKF) and to cease assisting Tamil insurgents. Militant
groups, although initially reluctant, agreed to surrender their
arms to the IPKF.
Within weeks, however, the LTTE declared its intent to continue
its armed struggle for an independent Tamil Eelam and refused
to disarm. The IPKF found itself engaged in a bloody police action
against the LTTE. Further complicating the return to peace was
a burgeoning Sinhalese insurgency in the south. The JVP, relatively
quiescent since the 1971 insurrection, began to reassert itself
in 1987. Capitalizing on opposition to the Indo-Lankan Accord
in the Sinhalese community, the JVP launched an intimidation campaign
against supporters of the accord. Numerous UNP and other government
supporters were assassinated. The government, relieved of its
security burden by the IPKF in the north and east, intensified
its efforts in the south. The JVP was crushed but at a high cost
in human lives.
From April 1989 through June 1990, the government engaged in
direct communications with the LTTE leadership. In the meantime,
fighting between the LTTE and the IPKF escalated in the north.
India withdrew the last of its forces from Sri Lanka in early
1990, and fighting between the LTTE and the government resumed.
Both the LTTE and government forces committed serious human rights
violations. In January 1995, the Sri Lankan Government and the
LTTE agreed to a cessation of hostilities as a preliminary step
in a government-initiated plan for peace negotiations. After 3
months, however, the LTTE unilaterally resumed hostilities. The
government then adopted a policy of military engagement with the
Tigers, with government forces liberating Jaffna from LTTE control
by mid-1996 and moving against LTTE positions in the northern
part of the country called the Vanni. An LTTE counteroffensive
begun in October 1999 reversed most government gains and by May
2000 threatened government forces in Jaffna. Heavy fighting continued
into 2001.
Peace Process
In December 2001, with the election of a new UNP government, the
LTTE and government declared unilateral cease-fires. In February
2002, with Norwegian Government facilitation, the two sides agreed
to a joint cease-fire accord. The peace process has continued
apace, affecting Sri Lankans politically, economically, and socially
in numerous and overwhelmingly positive ways. After holding six
rounds of talks, the LTTE withdrew from the negotiation process
in April 2003. At this time, the informal peace process continues
on the ground and both sides continue to observe the February
2002 ceasefire. In May 2004, the new UPFA government and the LTTE
committed themselves in public and in discussions with the Norwegian
facilitators to resuming the negotiation track.
LTTE violence, including the assassination of approximately 40
Tamil alleged opponents from 2002 through 2003, is largely confined
to the north and eastern provinces, which are 6 to 8 hours by
road from the capital. Before the advent of the peace process,
LTTE-perpetrated terrorist bombings directed against politicians
and civilian targets were common in Colombo, Kandy, and elsewhere
in the country. In July 2001, an LTTE suicide squad attacked the
Bandaranaike International Airport outside of Colombo and destroyed
a large number of military and civilian aircraft. In early March
2004, a faction of the LTTE from the east of the country broke
off from the main organization and declared itself an independent
body. In April, the main LTTE largely subdued this factional uprising
in fighting that left up to 30 people dead.
In October 1997, the U.S. Government designated the LTTE as a
foreign terrorist organization under provisions of the Anti-Terrorism
and Effective Death Penalty Act of 1996 and has maintained this
designation since then, most recently redesignating the group
in October of 2003.
GOVERNMENT
Per the 1978 constitution, the president of the republic, directly
elected for a 6-year term, is chief of state, head of government,
and commander in chief of the armed forces. Responsible to Parliament
for the exercise of duties under the constitution and laws, the
president may be removed from office by a two-thirds vote of Parliament
with the concurrence of the Supreme Court.
The president appoints and heads a cabinet of ministers responsible
to Parliament. The president's deputy is the prime minister, who
leads the ruling party in Parliament. A parliamentary no-confidence
vote requires dissolution of the cabinet and the appointment of
a new one by the president.
Parliament is a unicameral 225-member legislature elected by
universal suffrage and proportional representation to a 6-year
term. The president may summon, suspend, or end a legislative
session and dissolve Parliament. Parliament reserves the power
to make all laws.
The 1978 constitution clearly envisaged a system where the president
and the prime minister were from the same party. Following the
December 2001 parliamentary elections, the president and the prime
minister were from different parties. This led to serious cohabitation
strains. In November 2003, for example, President Kumaratunga
suddenly took over three key ministries (Defense, Interior, and
Mass Communications), precipitating a serious cohabitation crisis
between the two sides. In February of 2004, President Kumaratunga
dissolved Parliament and called for fresh elections. The UPFA,
while receiving enough seats in Parliament to form a minority
government, fell short of the 113 seats necessary for a majority
in Parliament. Mahinda Rajapaksa of the SLFP became Prime Minister
and former Prime Minister and UNP Leader Ranil Wickremesinghe
became Leader of the Opposition. Presidential elections were held
in November 2005. Mahinda Rajapaksa became President, and Ratnasiri
Wickramanayake became Prime Minister.
Sri Lanka's judiciary consists of a Supreme Court, Court of Appeal,
High Court, and a number of subordinate courts. Sri Lanka's legal
system reflects diverse cultural influences. Criminal law is fundamentally
British. Basic civil law is Roman-Dutch. Laws pertaining to marriage,
divorce, and inheritance are communal.
Under the Indo-Sri Lankan Accord of July 1987--and the resulting
13th amendment to the constitution--the Government of Sri Lanka
agreed to devolve significant authority to the provinces. Provincial
councils are directly elected for 5-year terms. The leader of
the council majority serves as the province's chief minister;
a provincial governor is appointed by the president. The councils
possess limited powers in education, health, rural development,
social services, agriculture, security, and local taxation. Many
of these powers are shared or subject to central government oversight.
Predating the accord are municipal, urban, and rural councils
with limited powers.
Principal Government Officials
President--Mahinda Rajapaksa
Prime Minister--Ratnasiri Wickramanayake
Ambassador to the United States--Bernard Goonetilleke
Ambassador to the United Nations--Prasad Kariyawasam
Sri Lanka maintains an embassy in the United States at 2148 Wyoming
Avenue NW, Washington, DC 20008 (tel. 202-4834025).
POLITICAL CONDITIONS
Sri Lanka's two major political parties--the UNP and the PA--embrace
democratic values, international nonalignment, and encouragement
of Sinhalese culture. Past differences between the two on foreign
and economic policy have narrowed. The SLFP, however, envisions
a broader role for the state in general.
Sri Lanka has a multi-party democracy that enjoys considerable
stability despite relatively high levels of political violence.
LTTE terrorist activities, generally aimed at destabilizing Sri
Lanka politically and economically, have included assassination
of politicians--killing the Industrial Development Minister by
suicide bombing in June 2000; the December 1999 attempted assassination
of President Kumaratunga; bombing of economic targets such as
the central bank in January 1996, the World Trade Center in October
1997, and the airport in July 2001; as well as attacks on Buddhist
religious sites. In January 1998, the LTTE detonated a truck bomb
in Kandy, damaging the Temple of the Tooth relic, the holiest
Buddhist shrine in the country.
ECONOMY
With an economy of $18.4 billion (est. August 2004), and a per
capita gross domestic product (GDP) of about $950, Sri Lanka enjoyed
strong growth rates in recent years. Sri Lanka began to shift
away from a socialist orientation in 1977. Since then, the government
has been deregulating, privatizing, and opening the economy to
international competition. The ethnic disputes of 1983 precipitated
a slowdown in economic diversification and liberalization. The
JVP uprising in the late 1980s caused extensive upheavals and
economic uncertainty.
Following the quelling of the JVP, increased privatization, reform,
and a stress on export-oriented growth helped revive the economy's
performance, taking GDP growth to 7% in 1993. Economic growth
has been uneven in the ensuing years as the economy faced a multitude
of global and domestic economic and political challenges. Overall,
average annual GDP growth was 5.2% over 1991-2000. In 2001, however,
GDP growth was negative 1.4%--the first contraction since independence.
Growth recovered to 4.0% in 2002 and 5.2% in 2003.
Foreign exchange reserves, which fell by 11% in 1999, decreased
further in 2000. In response, the government floated the rupee
on January 23, 2001. This led to a significant nominal depreciation
in 2001, but the rupee has since stabilized and reserves have
been replenished.
In 2003, continued peace allowed further progress on macroeconomic
stabilization during the first half of the year. Some progress
was reversed, however, during the political uncertainty in November
and December 2003. Growth in 2003 was largely driven by the services
sector (particularly telecom and tourism) and trade. Both exports
and imports rose over 9% in the first 10 months. Interest rates
declined. The inflation rate fell under 9%. External reserves
were sufficient to cover 5.6 months of imports. The Colombo Stock
Exchange (CSE) rebounded to become one of the better performers
in the area. The CSE rose 45% in 2002 and hit a record high in
June 2003 but performance declined at the end of the year. Fortunately,
the severe acute respiratory syndrome (SARS) epidemic did not
spread to Sri Lanka, and tourism was not severely affected. Sri
Lanka's garment exporters reported a surge in orders, shifted
from China due to SARS. On the negative side, in mid-2003 Sri
Lanka experienced its worst floods in 50 years, which caused extensive
damage in south and southwestern parts of the country.
Projections for 6.5% growth in 2004 did not account for political
instability, which negatively impacted performance. The December
26, 2004 Indian Ocean earthquake and tsunami caused extensive
damage in Sri Lanka. The human and environmental tragedy was enormous:
over 30,000 people were killed and another 500,000 were displaced,
and the bulk of the coastline was affected, leaving most fishing
fleets destroyed. The United States is leading the international
effort on relief and reconstruction, with damages estimated at
$1.5 billion in Sri Lanka.
The future of Sri Lanka's economic health is uncertain but is
primarily dependent on continued tsunami relief and reconstruction,
political stability, continuation of the peace process, and continued
policy reforms--particularly in the area of fiscal discipline
and direct management. Implementation of major reforms in the
civil service and education sectors and more disciplined spending
and improved revenue collection would help generate stronger economic
growth. If export orientation strengthens, weaknesses in government
will have less impact on growth.
A strong global economy should help Sri Lanka maintain and even
expand its export base, while effective aid utilization will be
critical in the post-tsunami reconstruction effort. Rising oil
costs in 2004, coupled with lower government revenue, held Sri
Lanka’s fiscal deficit at about 9% of GDP. The government
has indicated it intends to focus on better revenue collection
mechanisms to deal with the problem. Post-tsunami investment needs
may challenge government deficit reduction strategies over the
coming years. Sri Lanka has a high debt burden (105% of GDP) and
is reforming and modernizing its debt management structures.
Other challenges include diversification from Sri Lanka's key
exports--tea and garments. Garment exports face increased competition
in a quota-free era with the 2005 expiration of the Multi Fiber
Arrangement. The future of the tea industry is threatened by a
shortage of plantation labor and growing competition. There are
new efforts to diversify exports, explore tourism potential, and
improve competitiveness. The previous government had an ambitious
information and communications technology strategy to connect
and service every corner of the country. This project, if continued
and implemented successfully, could change Sri Lanka's economy
and social fabric and would take it into the information age.
The government hopes to take advantage of Sri Lanka's strategic
location on shipping routes, make use of the Indo-Lanka Free Trade
Agreement, and sign free trade agreements with other countries
to achieve regional trading hub status. If peace returns and all
these efforts bear fruit, real growth could be in the 6%-7% range
beyond 2004, and will help realize the government's intention
of making Sri Lanka the gateway to South Asia.
The service sector is the largest component of GDP (54%). In
2003, the service sector continued its strong expansion, fueled
primarily by strong growth in telecom, tourism, and financial
services. Public administration and defense expenditures have
remained steady. Repatriated earnings of Sri Lankans working abroad
continued to be strong. There also is a small but growing information
technology sector, especially information technology training
and software development and exports.
Manufacturing accounts for about 16% of GDP. The textile, apparel,
and leather products sector is the largest, accounting for 44%
of total industrial output. The second-largest industrial sector,
at 24% of total manufacturing output, is food, beverages, and
tobacco. The third-largest industrial sector is chemical, petroleum,
rubber, and plastic products. Agriculture has lost its relative
importance to the Sri Lankan economy in recent decades. It accounts
for 20.1% of GDP and provides employment to 33% of the working
population. Rice, the staple cereal, is cultivated extensively.
The plantation sector consists of tea, rubber, and coconut; in
recent years, the tea crop has made significant contributions
to export earnings and saw production slightly decrease in 2003.
Tea prices have remained stable. The construction sector accounts
for 7.4% of GDP and mining and quarrying 1.8%. In recent years,
the government has eliminated many price controls and quotas,
reduced tariff levels, eliminated most foreign exchange controls,
and sold more than 55 state-owned companies and 20 estate-holding
companies. Colombo boasts one of the most modern stock exchanges
in the region, and the Sri Lankan Government offers a range of
tax and other incentives to attract potential investors.
Trade and Foreign Assistance
Exports to the United States, Sri Lanka's most important market,
were estimated at $1.8 billion in 2003, or 38.5% of total exports.
For many years, the United States has been Sri Lanka's biggest
market for garments, taking more than 63% of the country's total
garment exports. India is Sri Lanka's largest supplier, with exports
of $835 million in 2002. Japan, traditionally Sri Lanka's largest
supplier, was its fourth-largest in 2002 with exports of $355
million. Other leading suppliers include Hong Kong, Singapore,
Taiwan, and South Korea. United States exports amounted to $155
million in 2003. Sri Lanka is highly dependent on foreign assistance,
and several high-profile assistance projects were launched in
2003. The most significant of these resulted from an aid conference
in Tokyo in June 2003; pledges at the summit, which included representatives
from the IMF, World Bank, Asian Development Bank, Japan, the European
Union, and the United States totaled $4.5 billion. This funding
was in response to a poverty reduction strategy program laid out
in "Regaining Sri Lanka," an action paper authored by
the Sri Lankan Government, and a number of studies commissioned
by the donor community that, together, provide a basic framework
for economic revival. While implementation of previous aid projects
has been spotty, the government believes it can improve this record
by streamlining tender processes and improving project management
skills.
The United States is currently leading the international efforts
for tsunami relief and reconstruction. In addition to pledging
$350 million to tsunami-affected countries, more than 15,000 U.S.
military personnel were involved in providing relief support in
the affected region. Twenty-five ships and 94 aircraft were participating
in the effort. The U.S. military had delivered about 2.2 million
pounds of relief supplies to affected nations, including 16,000
gallons of water, 113,000 pounds of food, and 140,500 pounds of
relief supplies. USAID disbursed an additional $78 million.
Labor
More than 20% of the 6.1 million-strong labor force, excluding
the north and east, is unionized. Trade union membership is on
the decline. There are more than 1,650 registered trade unions,
many of which have 50 or fewer members, and 19 federations. Many
unions have political affiliations. The Ceylon Workers Congress
(CWC) and Lanka Jathika estate workers union are the two largest
unions representing workers in the heavily unionized plantation
sector. The president of the CWC also is Minister of Livestock
Development and Estate Infrastructure. The CWC's agenda includes
political issues, such as citizenship status for stateless Indian
Tamils. Some of the stronger and more influential trade unions
include the Ceylon Mercantile Union, Sri Lanka Nidhahas Sevaka
Sangamaya, Jathika Sevaka Sangayama, Ceylon Federation of Trade
Unions, Ceylon Bank Employees Union, Union of Post and Telecommunication
Officers, Conference of Public Sector Independent Trade Unions,
and the JVP-aligned Inter-Company Trade Union. The unemployment
rate has declined in recent years and hovers at 10%. The rate
of unemployment among high school and college graduates, however,
remains proportionally higher than the rate for less-educated
workers. The government has embarked on educational reforms it
hopes will lead to better preparation of students and fewer mismatches
between graduates and jobs. In addition, it also has begun a youth
corps program to provide employment skills to the unemployed.
FOREIGN RELATIONS
Sri Lanka traditionally follows a nonaligned foreign policy but
has been seeking closer relations with the United States since
December 2001. It participates in multilateral diplomacy, particularly
at the United Nations, where it seeks to promote sovereignty,
independence, and development in the developing world. Sri Lanka
was a founding member of the Non-Aligned Movement (NAM). It also
is a member of the Commonwealth, the South Asian Association for
Regional Cooperation (SAARC), the World Bank, International Monetary
Fund, Asian Development Bank, and the Colombo Plan. Sri Lanka
continues its active participation in the NAM, while also stressing
the importance it places on regionalism by playing a strong role
in SAARC.
U.S.-SRI LANKAN RELATIONS
The United States enjoys cordial relations with Sri Lanka that
are based, in large part, on shared democratic traditions. U.S.
policy toward Sri Lanka is characterized by respect for its independence,
sovereignty, and moderate nonaligned foreign policy; support for
the country's unity, territorial integrity, and democratic institutions;
and encouragement of its social and economic development. The
United States is a strong supporter of ethnic reconciliation in
Sri Lanka and the peace process that began in December 2001.
U.S. assistance has totaled more than $1.63 billion since Sri
Lanka's independence in 1948. Through the U.S. Agency for International
Development (USAID), it has contributed to Sri Lanka's economic
growth with projects designed to reduce unemployment, improve
housing, develop the Colombo Stock Exchange, modernize the judicial
system, and improve competitiveness. At the June 2003 Tokyo Donors'
Conference on Sri Lanka, the United States pledged $54 million,
including $40.4 million of USAID funding.
In addition, the International Broadcast Bureau (IBB)--formerly
Voice of America (VOA)--operates a radio-transmitting station
in Sri Lanka. The U.S. Armed Forces maintain a limited military-to-military
relationship with the Sri Lanka defense establishment. By February
2005, the U.S. had contributed $67 million to Sri Lankan relief
following the tsunami disaster of December 26, 2004.
Principal U.S. Embassy Officials
Ambassador--Jeffrey J. Lunstead
Deputy Chief of Mission--James F. Entwistle
Head of Political Section--Patricia Mahoney
Head of Economic/Commercial Section--Dean Thompson
Management Officer--Jane Ross
Consular Officer--Marc Williams
Defense Attaché--Lt. Col. Richard Girven
Director, USAID--Carol Becker
Public Affairs Officer-- Philip Frayne
IBB Station Manager--Glenn Britt
The U.S. Embassy in Sri Lanka is located at 210 Galle Road, Colombo
3 (tel: 94-11-2448007, fax: 94-11-2437345). U.S. Agency for International
Development offices are located at the American Center, 44 Galle
Road, Colombo 3 (tel: 94-11-2472855; fax: 94-11-2472850/2472860).
Public Affairs offices also are located at the American Center
(tel: 94-11-2421270/2422121, fax: 94-11-2449070).
IBB offices are located near Chilaw, 75 kms north of Colombo
(94-32-55931/32/94-72-285860, fax: 94-32-55822).
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers.
Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling abroad may
be obtained from the Office of Overseas Citizens Services at (202)
647-5225. For after-hours emergencies, Sundays and holidays, call
202-647-4000.
The National Passport Information Center (NPIC) is the U.S. Department
of State's single, centralized public contact center for U.S.
passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778).
Customer service representatives and operators for TDD/TTY are
available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern Time,
excluding federal holidays.
Travelers can check the latest health information with the U.S.
Centers for Disease Control and Prevention in Atlanta, Georgia.
A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations
or requirements, and advice on food and drinking water safety
for regions and countries. A booklet entitled Health Information
for International Travel (HHS publication number CDC-95-8280)
is available from the U.S. Government Printing Office, Washington,
DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency
and customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from a
country's embassy and/or consulates in the U.S. (for this country,
see "Principal Government Officials" listing in this
publication).
U.S. citizens who are long-term visitors or traveling in dangerous
areas are encouraged to register their travel via the State Department’s
travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related assistance
and market information offered by the federal government and provides
trade leads, free export counseling, help with the export process,
and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and international trade
information from the Federal government. The site includes current
and historical trade-related releases, international market research,
trade opportunities, and country analysis and provides access
to the National Trade Data Bank.
