y. Government spending and reconstruction drove growth to
more than 7% in 2006 but reduced agriculture output probably slowed
growth to about 6 percent in 2007. Government spending and loose
monetary policy drove inflation to nearly 16% in 2007. Sri Lanka's
most dynamic sectors now are food processing, textiles and apparel,
food and beverages, port construction, telecommunications, and
insurance and banking. In 2006, plantation crops made up only about
15% of exports (compared with more than 90% in 1970), while textiles
and garments accounted for more than 60%. About 800,000 Sri Lankans
work abroad, 90% of them in the Middle East. They send home more
than $1 billion a year. The struggle by the Tamil Tigers of the
north and east for an independent homeland continues to cast a
shadow over the economy.

GDP (purchasing power parity):

$82.02 billion (2007 est.)

GDP (official exchange rate):

$30.01 billion (2007 est.)

GDP - real growth rate:

6.8% (2007 est.)

GDP - per capita (PPP):

$4,000 (2007 est.)

GDP - composition by sector:

agriculture: 11.7%
industry: 29.9%
services: 58.4% (2007 est.)

Labor force:

7.489 million (2007 est.)

Labor force - by occupation:

agriculture: 34.3%
industry: 25.3%
services: 40.4% (30 June 2006 est.)

Unemployment rate:

6% (2007 est.)

Population below poverty line:

22% (2002 est.)

Household income or consumption by percentage share:

lowest 10%: 1.1%
highest 10%: 39.7% (FY03/04)

Distribution of family income - Gini index:

50 (FY03/04)

Investment (gross fixed):

24.7% of GDP (2007 est.)

Budget:

revenues: $5.384 billion
expenditures: $7.608 billion (2007 est.)

Fiscal year:

calendar year

Public debt:

85.8% of GDP (2007 est.)

Inflation rate (consumer prices):

15.8% (2007 est.)

Central bank discount rate:

15% (31 December 2007)

Commercial bank prime lending rate:

17.08% (31 December 2007)

Stock of money:

$2.465 billion (31 December 2007)

Stock of quasi money:

$10.46 billion (31 December 2007)

Stock of domestic credit:

$14.82 billion (31 December 2007)

Agriculture - products:

rice, sugarcane, grains, pulses, oilseed, spices, tea, rubber,
coconuts; milk, eggs, hides, beef; fish

Industries:

processing of rubber, tea, coconuts, tobacco and other agricultural
commodities; telecommunications, insurance, banking; clothing,
textiles; cement, petroleu