Sri Lanka: A pearl in the Indian Ocean

Sri Lanka, the island nation-state in the Indian Ocean, boasts a diverse cultural mosaic, as its history and origin dates back to the era of 6th century B.C. Formerly known as Ceylon, the country is a developing market in the region, and has made inroads as a vibrant democracy and a stable geo-political entity. Buddhism was introduced circa 250 B.C., and the first kingdoms developed at the cities of Anuradhapura and Polonnaruwa, which ultimately gave way to a Tamil kingdom in the 14th century in the south of India.  
Today, Sri Lanka is rising as an evolving power in South East Asia, and cessation of hostilities with the Tamil rebels (since 2009) has placed it in a comfortable position, wherein it eyes growth and reconciliation. The island country constitutes a Sinhalese majority (around 76 per cent), and a sizeable Tamil minority comprising of more than 11 per cent Sri Lankan Tamils and 5 per cent Indian Tamils, as well as other small ethnic components. This colourful mosaic is Lanka's beauty, and the post-LTTE struggle political dispensations have made great strides in buoying the country's economy and working for social harmony. In the footsteps of South Africa, which experienced decades long apartheid and opted for a new chapter of reconciliation with the Black majority, Sri Lanka too is treading a path of rapprochement between the Sinhalese and Tamils.  
The socio-economic indicators of Sri Lanka are quite promising as it registered a GDP growth rate of 4.6 per cent. With a literacy rate of around 92 per cent, the island-nation is scaling new heights of success as it concentrates on building infrastructure and striking a new social contract. Lankans enjoy a GDP per capita income of $13,000 (ppp) dollars per annum (2017 estimates), and the economic configuration is tilted towards the services sector. Governmental figures say agriculture constitutes 7.8 per cent of GDP, whereas industry takes a slice of 30.5 per cent and 61.7 per cent goes to services. Whereas, the demographic pie is evenly poised in the agrarian and production sectors with a 28 and 25 per cent, respectively, and the remaining 45 per cent of people are associated with works industry. Apart from agriculture and dairy in abundance, major industries are processing of rubber, tea, coconuts, tobacco and other commodities. Telecommunications, insurance, banking; tourism, shipping; clothing, textiles; cement, petroleum refining, information technology services, and construction are in full bloom, as they cater to a roughly growing population of 25 million.
The government statistics put unemployment as low as 4 per cent, whereas critics say it runs in double digits. Special efforts are being made for striking a new balance in the economy after more than two decades of civil strife. Since the end of the conflict, the government has enacted an ambitious programme of economic development projects, many of which are financed by loans from China, Europe and other ASEAN countries. Rehabilitation and settling the displaced refugees is a gigantic task that Sri Lanka is involved with, and it eagerly looks up to the world community for a helping hand. As a good sign, the government has resettled more than 95 per cent of displaced civilians displaced and released former LTTE sympathisers as a mark of social reconciliation. Likewise, the government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth.
In terms of productivity and international trade, Colombo's exports are to the tune of $12 billion, whereas its imports are double the exports leading to a staggering $24 billion. Likewise, its external debt is more than $45 billion corresponding to its GDP of around $82 billion, which is almost 80 per cent of GDP and remains among the highest of the emerging markets. This is why the country is under an IMF programme of reforms, intended at sustaining growth while maintaining macroeconomic stability. 
Sri Lanka's biggest attraction is its tourism potential. It is a floating gem in the Indian Ocean, as its landscape ranges from arid plains to rainforests, and sandy beaches. It has a coastline of more than 1,300 kilometres with a tropical monsoon climate. It is rightly called as a destination for 'all seasons', and is home to eight UNESCO World Heritage sites. A pleasant blend of geography and climate, as well as oodles of elephants, the biggest concentration of leopards and other wildlife, make Sri Lanka irresistible for tourism and investment.    
-mehkri@khaleejtimes.com