Sri Lanka

Background

The first Sinhalese arrived in Sri Lanka late in the 6th century B.C. probably from northern India. Buddhism was introduced in about the mid-third century B.C., and a great civilization developed at the cities of Anuradhapura (kingdom from circa 200 B.C. to circa A.D. 1000) and Polonnaruwa (from about 1070 to 1200). In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The coastal areas of the island were controlled by the Portuguese in the 16th century and by the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was united under British rule by 1815. As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972. Tensions between the Sinhalese majority and Tamil separatists erupted into war in 1983. Tens of thousands have died in the ethnic conflict that continues to fester. After two decades of fighting, the government and Liberation Tigers of Tamil Eelam (LTTE) formalized a cease-fire in February 2002 with Norway brokering peace negotiations. Violence between the LTTE and government forces intensified in 2006 and the government regained control of the Eastern Province in 2007. In May 2009, the government announced that its military had finally defeated the remnants of the LTTE and that its leader, Velupillai PRABHAKARAN, had been killed.

People

Population: 21,324,791
Ethnic groups: Sinhalese 73.8%, Sri Lankan Moors 7.2%, Indian Tamil 4.6%, Sri Lankan Tamil 3.9%, other 0.5%, unspecified 10% (2001 census provisional data)
Religions: Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2%, unspecified 10% (2001 census provisional data)
Languages: Sinhala (official and national language) 74%, Tamil (national language) 18%, other 8%
[note: English is commonly used in government and is spoken competently by about 10% of the population]

Government

Executive

Chief of state: President Mahinda Percy RAJAPAKSA (since 19 November 2005); note - the president is both the chief of state and head of government; Ratnasiri WICKREMANAYAKE (since 21 November 2005) holds the largely ceremonial title of prime minister
Head of government: President Mahinda Percy RAJAPAKSA (since 19 November 2005)
Cabinet: Cabinet appointed by the president in consultation with the prime minister
Elections: President elected by popular vote for a six-year term (eligible for a second term); election last held on 17 November 2005 (next to be held in 2011)

Legislative

Unicameral Parliament (225 seats; members elected by popular vote on the basis of an open-list, proportional representation system by electoral district to serve six-year terms)

Judicial

Supreme Court; Court of Appeals; judges for both courts are appointed by the president

Flag Description

Yellow with two panels; the smaller hoist-side panel has two equal vertical bands of green (hoist side) and orange; the other panel is a large dark red rectangle with a yellow lion holding a sword, and there is a yellow bo leaf in each corner; the yellow field appears as a border around the entire flag and extends between the two panels.

Economy

In 1977, Colombo abandoned statist economic policies and its import substitution trade policy for more market-oriented policies, export-oriented trade, and encouragement of foreign investment. Recent changes in government, however, have brought some policy reversals. Currently, the ruling Sri Lanka Freedom Party has a more statist economic approach, which seeks to reduce poverty by steering investment to disadvantaged areas, developing small and medium enterprises, promoting agriculture, and expanding the already enormous civil service. The government has halted privatizations. Although suffering a brutal civil war that began in 1983, Sri Lanka saw GDP growth average 4.5% in the last 10 years with the exception of a recession in 2001. In late December 2004, a major tsunami took about 31,000 lives, left more than 6,300 missing and 443,000 displaced, and destroyed an estimated $1.5 billion worth of property. Government spending on development and fighting the LTTE drove GDP growth to about 7% per year in 2006-07 before the global recession slow growth in 2008, but high government spending and high oil and commodity prices also raised inflation to around 15% in 2008. Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, port construction, telecommunications, and insurance and banking. In 2008, plantation crops made up only about 20% of exports (compared with more than 90% in 1970), while textiles and garments accounted for more than 40%. About 1.5 million Sri Lankans work abroad, 90% of them in the Middle East. They send home more than $2.5 billion a year. The 25-year civil conflict between LTTE and the government of Sri Lanka has been a serious impediment to economic activities. By mid February 2009, the LTTE remained in control of small and shrinking area in the North. The conflict continues to cast a shadow over the economy.

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Information from The World Factbook