Business Market in Sri Lanka

1
Business Market in Sri Lanka
2
Economic Growth

• Sri Lanka has experienced huge economic growth
  since its independence in 1948.
  
• In 1977 the government introduced a new program
  called the Liberalization Act designed to boost
  the manufacturing industry. Until around the
  1980s the main source of income for Sri Lanka
  came from its agriculture sector.
• When the Liberalization Act was passed it
  attracted many new foreign investors and promoted
  the export of manufactured goods.
  
• Sri Lankas manufacturing industry rose from 12
  in 1977 to 16 by the mid 80s.
  
• The total labor force in Sri Lanka has increased
  from 5.8 million in 1991 to 8.3 million in 2001.
  

3
What is the Liberalization Act?

• The Liberalization Act was designed to set up
  free trade zones and they gave huge tax cuts to
  foreign companies.
  
• In todays market, Garments, textiles, and
  electronics dominate manufacturing industry.
  Around 70 of these workers are women.

4
Agricultural Exports

• Tea, rubber and coconut are the three chief
  exports in commercial crops.
  
• As you can see since 1977 the agriculture
  industry has dropped significantly. From Jan-Sep
  2003 they made 697.9(in millions) Us dollars from
  agriculture and 2941.6 from industrial.

5
Industrial Exports

• Textiles and apparel account for half of the
  industrial exports(1897.4 US dollars in
  millions).
  
• The second largest comes from the leather and
  rubber sector(290.6 US dollars in
  
• millions).

6
Foreign Trade

• In 2001 the United States was the largest
  purchaser of Sri Lankas exports accounting for
  64 percent of the total value.
  
• Manufactured goods made up 75 of Sri Lankas
  total exports. In 1977 before the Liberalization
  Act it accounted for only 14.