Democratic Socialist Republic of Sri Lanka. This chapter was adapted from the Department of State Post Report for Sri Lanka. Supplemental material has been added to increase coverage of minor cities, facts have been updated, and some material has been condensed. Readers are encouraged to visit the Department of State's web site at http: SRI LANKA has often been described as a tropical paradise.

The vegetation of the coastal belt is lush and dramatic, and the mountainous areas of the interior are spectacular. Pleasant sea breezes temper the coast's tropical climate through most of the year; the hills and mountains in the island's center are cool at night. Arab traders of long ago knew the island as Serendib, which is the origin of the word serendipity, reflecting the unexpected pleasures of the land. Sri Lanka, once known as the British Crown Colony of Ceylon, became independent inalthough it remained under dominion status.

Its constitution proclaimed it an independent republic, and changed the country's name. Finally, ina new constitution officially declared the island the Democratic Socialist Republic of Sri Lanka. Colombo, the capital city, lies on a flat coastal plain on the southwestern side of the island. It grew up around the harbor, which has been expanded by a breakwater. The main business section is near the port in what is known as the Fort the old fort walls no longer remain.

The buildings in this area are typically British and Dutch colonial, and the streets are generally congested. Parking is a problem. The Pettahor traditional bazaar, adjoins the main business area. It consists of narrow, crowded streets and small shops and stalls. The original Sinhalese name, Kalantotla meaning Kelani ferry was corrupted to Kolambu by Arab traders, and was changed to Colombo by the Portuguese.

Main residential sections of the city are south and southeast of the business area and are generally pleasant. Flowering trees line the streets, and old mansions with lovely gardens lend an exotic tropical air.

Cinnamon Gardens is a wealthy residential and recreational area. Its success prompted the establishment of additional zones at Biyagama, 15 miles from the capital, and near the southern port of Galle. Colombo's port is one of the world's largest man-made harbors. It is a popular port of call for passenger ships and has become a major cargo transshipment hub. Colombo is known for its gem cutting and ivory carving.

Other industries include food and tobacco processing, metal fabrication, engineering, and the manufacture of chemicals, textiles, glass, cement, leather goods, clothing, jewelry, and furniture. An oil refinery is located nearby. Historically, Colombo has been known for over two thousand years, in its early days as an open anchorage for oceangoing ships of Greco-Roman, Arab, and Chinese traders.

Muslims settled here in the eighth century, and the Portuguese arrived in the 16th century, building a fort to protect their spice trade.

The Dutch, also interested in the spice trade, gained control of the city in the 17th century. Colombo passed to the British inand it became capital of the Crown Colony of Ceylon in Colombo replaced Galle Point de Galle as the country's chief port in the s, becoming a major refueling and supply center for merchant ships on the Europe -Far East route.

During World War IIColombo served as an Allied naval base, and became the capital of independent Ceylon in Clothing worn in Washington, DC, during the hottest summer weeks is suitable year round in Colombo, although men's office attire is more casual than that in Washington, DC.

A short-sleeved shirt, with or without a tie, or a bush suit are most frequently worn by expatriate men here.

A sports jacket or suit are suitable for business calls. For up-country wear, light wool suits, wool slacks, sweaters, and flannel shirts may be needed. In Nuwara Eliya, the privately owned Hill Club requires men to wear jackets and ties to dinner and will provide these items for a small rental fee for those who arrive without.

Locally made shirts, shorts, ties, and socks are generally unsatisfactory, and should be brought from the U. Local tailoring of bush shirts, suits, and trousers is good, but fabric is generally not as satisfactory as that available in the U.

Women's office attire is the same as that worn in a southern American city during the summer months. As in the U. Women are not expected to wear hosiery at any functions, but this is a matter of personal choice and comfort.

Casual clothing for women can be made locally either with imported or local batik material. A good supply of wash-and-wear fabric, thread, zippers, buttons, trim, elastic, etc.

Children's clothing needs are simple but, whenever possible, should be brought or ordered from the U. The fit of shoes is a particular problem, except for sandals. Garment bags are useful for clothing protection. Extreme dampness during the monsoon season can cause clothes and shoes to mildew unless kept in air-conditioned rooms. Lightweight shoes and sandals are particularly desirable here.

Sports shoes should be brought from home. Clothing will not last as long here as in the U. The tropical climate and frequent laundering shortens the useful life of most items. Underwear, particularly with elastic, tends to wear out quickly. A variety of seasonal, fresh tropical fruits and vegetables is available at reasonable prices. Some vegetables are similar to those in temperate climates but may not have a familiar flavor.

All raw or unpeeled vegetables and fruits must be soaked in disinfectant to reduce the danger of amoeba or other parasite infestation. Milton, a satisfactory brand-name disinfectant, is sometimes available. Clorox also may be used. Because the local market is unpredictable, and food quality is not usually up to U. In general, local dry cleaning is mediocre, although some Colombo hotels offer fairly good service.

Because of the limited dry cleaning services and the warm climate, lightweight washable clothing including men's suits and ties is preferable. Dressmakers are available at reasonable fees for making women's and children's clothing and men's shirts. Normally, dressmakers prefer to work in their customers' homes and do not supply their own sewing machines or notions.

Shoe repair is done by hand and is adequate and inexpensive. Shoes, particularly sandals, also can be made inexpensively. In Colombo, many beauticians are familiar with Western styling. European or Australian products are generally used. Roman Catholic, Church of Sri Lanka EpiscopalianScots PresbyterianBaptistMethodist, Christian Science, Mormon, and Dutch Reformed.

No Orthodox churches are available. Sri Lanka has no synagogue. In Kandy, English services are held in Anglican, Roman Catholic, Baptist, and other churches. Most have Sunday school programs. Many churches also have services in Sinhala and Tamil. Footwear and headgear should be removed before entering Buddhist shrines. Photographing statues of the Buddha is acceptable, but posing beside them is not.

Discreet dress in public places is appreciated. Most Americans here employ domestic help, usually a combination cook-houseperson, or a cook and a houseperson and a part-time gardener. Uniforms and medical bills are added expenses. A single person ordinarily would have a combination cook-houseperson and a part-time gardener. Younger children of most foreigners resident in Colombo attend the Overseas Childrens School OCS.

At present, the school has an enrollment of overrepresenting more than 40 nations. Originally established to cater to the needs of the British business community, this school has strong Western orientation, with most of the textbooks in the primary and middle school now coming from the United Kingdom and the United States.

OCS, offering classes from nursery through 12th grade, has 75 teachers, of whom more than one-third are expatriates, with most being British and American. The school, which at one time operated on an extremely limited budget, has made remarkable academic and financial strides since The school is self-funding from fees.

In addition, it receives grants from the U. State Department's Office of Overseas Schools. It is located on a five-acre campus; more expatriate teachers are being recruited; teacher evaluations and training and curriculum development receive priority attention; and the supply of books, computers, and other teaching aids is expanding.

Students completing school at OCS can be expected to compete favorably with their peers for entrance into college, with International Baccalaureate IB diploma graduates likely to have access to the top colleges. Transfer students are generally not accepted into grade 12 unless they have successfully completed grade 11 in an IB program elsewhere.

The school offers French, Spanish, and Sinhala as the main foreign languages in grades seven through 10, and students are able to follow mother-tongue courses for the IB diploma in grades 11 and OCS also offers an extensive English course as a second-language program for nonnative speakers. OCS follows a two-semester school year starting at the beginning of September and ending in June. Parents should bring as detailed records as possible from their children's previous school sand a health record is required at the time of admission.

Placement at grade level is based on an internally administered test. Although the school provides guidance by learning and disability specialists, the physical layout of the campus makes it impossible for the school to accept children whose physical handicaps confine them to a wheel chair. Although the school does not require a specific uniform attire, a dress code exists, and students should look presentable. For physical education, white shorts and a T-shirt available from the school are required.

A few American children attend the Colombo International School CISa private British curriculum school with over students. CIS was founded in and offers classes for students ages two to The teacher student ratio is 1 to 9. CIS offers the Scholastic Aptitude Test SATthe Test of English as a Foreign Language TOEFLand achievement test classes to prepare students for admission to U.

Extracurricular activities are an important part of school life, and sports, music, and drama are included in the school program. Universities in Sri Lanka offer courses leading to bachelor's and master's degrees in BuddhismOriental studies, arts, science, law, engineering, agriculture, and medicine.

Instructions are in Sinhala, Tamil, or English, depending on student demand. Courses are based on the British university system, which concentrates on a major subject and allows few outside studies. Although foreigners are officially welcomed, few if any Americans have attended in recent years. Colombo is the only large city in Sri Lanka.

Bombay and Madrasthe closest large cities abroad, are about one to two hours away by air. New Delhi can be reached by air via Madras or Bombay. Plane service is not available directly between Colombo and New Delhi. The Maldive Islands are easily accessible by air and offer many resorts. Sri Lanka has many interesting places for weekend outings or longer holiday trips. The principal spots in the hill country are Kandy, about 70 miles away two-and-a-half hours by car, altitude 1, feet ; Nuwara Eliya, about miles away five hours by car, altitude 6, feet ; and Bandarawela, about miles away five hours by car, altitude 4, feet.

Sigiriya three-and-a-half hours from Colombo by car is a rock fortress with famous frescoes. Sightseers also will enjoy the ancient ruins at Anuradhapura and Polonnaruwa five to six hours by car and the Yala and Wilpatu wild-life sanctuaries seven and three hours respectively, by car. Perhaps the most awesome and forbidding region of Sri Lanka is Horton Plains, hard to reach but well worth the effort.

Located about an hour's drive from Nuwara Eliya, Horton Plains is part of the Peak Wilderness Sanctuary. One of the major attractions here is World's End, considered by many the finest view in all of Sri Lanka.

For those who enjoy trout fishing and hiking, this is the place. Also, the Sinharaja Forest is one of the few tropical rain forests left in the world. Hotel accommodations at tourist destinations outside Colombo are excellent.

The government operates a large number of rest houses and, in certain areas notably Nuwara Eliya, Horton Plains, and the game parksbungalows are available for rent. The rest houses vary widely in quality; all are reasonably priced.

The Colombo Zoological Gardens has a fine and large collection of animals, birds, and reptiles housed in a beautiful setting. A special feature of the zoo is an exhibition of trained elephants every evening. Sri Lanka has beaches on both east and west coasts; but the east coast beaches may not be accessible due to ethnic conflict.

Swimming is unsafe at certain times of the year because of the strong currents generated by the monsoons. Scuba diving is good during the season. The most popular beaches on the west coast, which are safe from about November to May, are Mt. Lavinia 20 minutes from the city and Bentota about a one-hour drive. Hikkaduwa, near Bentota, features a coral garden.

Sports commonly found in other tropical areas are also found in Sri Lanka. The most popular sports available to foreign residents are tennis, golf, and swimming.

Others are snorkeling, scuba diving, soccer, cricket, rugby, badminton, squash, fishing, and sailing. Instruction in karate is also available. Many of the sports require club membership. Some of the clubs open to membership are the Royal Colombo Golf Club, Nuwara Eliya Golf Club rated among the best in South Asiain the mountains at 6, feetRoyal Colombo Yacht Club, Colombo Rowing Club, Otter Aquatic Club, Colombo Motor Yacht Club, Gymkana Club, and the Colombo Swimming Club.

In addition, the hotels offer yearly pool memberships. The Galle Face Hotel has a saltwater pool, and the Intercontinental, Lanka Oberoi, Hilton, Ramada Renaissance, and the Taj Samudra offer memberships in their sport centers.

A few movie theaters show Western movies, but most films are Indian or Sinhalese. Amateur dramatic groups and symphony, chamber, and choral groups give regular performances. Occasionally, entertainers from foreign countries including the U. Indian movie and dance concerts are fairly frequent. Colombo has a few nightclubs, a range of restaurants serving ethnic foods Italian, Chinese, French, Korean, German, Japanese, and Indianand several hotels.

Menu selection, culinary expertise, and musical entertainment are limited. Both Eastern and Western menus are available at major hotels. The American Women's Association conducts charitable and social activities, and introduces new arrivals to other Americans and to local customs and shopping.

All resident American women may join the association. Branches of the YMCA, YWCA, and the Salvation Army are also active. Some American women join the International Women's Club, which has tennis courts as well as social activities.

The national tourist agency — Ceylon Tourist Board — is located at 78, Steuart Place, P. BoxColombo 3. Kandy is the capital of the hill country. It is 1, feet above sea level, and 72 miles from Colombo. Kandy is a mountain resort and the market center for an area producing tea, rubber, rice and cacao. The main part of the city overlooks a scenic artificial lake built by Kandy's last king in Kandy is noted for local handicrafts such as reed and lacquer work and silver and brassware.

The population here is overAlthough Kandy is cooler than Colombo, the same type of clothing is generally appropriate for both. A sweater may be necessary in the evening, especially in December and January. Ready-made clothing, except for batiks, is not readily available in Kandy. Tailoring is good, but some fabrics are available. Staples are generally available here. The local beef is quite good. Chicken, ham, pork, and bacon — available at Cargills, Elephant House, and almost all grocery stores — are also good.

The imported food generally is expensive. Some foreign and local toiletries, cosmetics, perfumes, etc. A limited supply of medicines can be found at Cargills and at Lanka Medicals. Shoes, as well as most mechanical and electrical items, can be repaired. Beauty shops and dry cleaning facilities offer adequate services. Domestic help is available and is well trained. Salaries for domestic help are generally lower than in Colombo. Kandy has a general hospital, seldom used by Americans, and the Lakeside Medical Center a Seventh Day Adventist institutionwhich has acceptable facilities.

Local specialists may be called in for consultation at the center or seen at the Channeled Practice Services, a facility permitting government physicians to have private patients. The Japanese have built and equipped a teaching hospital on the campus of the School of Medicine at Peradeniya. This provides additional services and facilities. For major medical and hospitalization problems, facilities are better in Colombo.

The Temple of the Tooth, visited by Buddhist pilgrims from all over the world, is in Kandy. The sacred tooth relic of the Buddha is said to have been brought to Sri Lanka early in the fourth century, hidden in the hair of an Indian princess. The temple, which is Sri Lanka's holiest Buddhist shrine, was bombed in early The government accused the Tamil Tigers of committing the bombing. Kandy, the island's chief city in medieval times, was the final stronghold of the Sinhala kings and the last place to fall under foreign rule.

Things to see include the kings' audience hall, the four devales templesthe artificial lake constructed by Sri Wickrema Rajasinghe last king of Kandy inthe elephants' bathing place in Katugastota, the botanical gardens and university at Peradeniya, and the Kandyan Art Association.

The most spectacular religious festival, the Esala Perahera, generally takes place in July or August, depending on the astrologically auspicious moment, and ends on the day following the night of the full moon. By the last night, as many as 80 to elephants, caparisoned in velvet, satin, and silk with silver ornaments, move in the procession.

Chief of all elephants is the Maligawa district where Kandy is located tusker, bearing a replica of the casket which holds the sacred tooth relic. Temples in the Kandy area are Lankatilaka Vihare, Gadalendeniya Vihare, Galmadawa Vihare, and Degalkoruwa Vihare. In Kandy, active sports may be enjoyed either at the Garden Club, which has tennis courts, or at the Hotel Suisse, which opens its pool and tennis courts to membership by monthly subscription and entrance fee. Nuwara Eliya, 48 miles three hours from Kandy, in Sri Lanka's beautiful tea country at an elevation of 6, feet, has an hole golf course.

Rugby, soccer, and cricket matches are held in season. Occasionally, English-language movies are shown in Kandy cinemas. Classic American movies, shown periodically at the Kandy American Center, are open to a limited number of Americans. Occasionally, movies also are shown at the British Council Library.

Concerts by local or foreign artists, sponsored by various Kandy organizations, are scheduled about every two months.

A local dance band plays on alternate nights at two Kandy hotels. The Kandy Lake Club is a gambling casino.

There are a few nice picnic spots near the city, particularly the Victoria Dam area. Mountains, beaches, and wildlife parks are from three to seven hours from Kandy by car. The city was founded in B. Today, it is one of the world's leading Buddhist centers. An ancient pipal tree here is thought to have grown from a piece of the Bo Tree at Buddh Gaya in Indiaunder which Guatama Buddha attained enlightenment. Interesting sites include a palace, ruins of a rock-hewn temple, large stupas, and other relics.

GALLE formerly Point de Galle is located at the extreme southern end of Sri Lanka on the Indian Ocean. With a population of over , Galle is an agricultural market center, exporting tea, rubber, coconut oil, cloves, and other products from the surrounding region. Known as early as B. Under the Dutch, it was the capital of Ceylon from to The Dutch built a fort here to guard the harbor and it still stands today.

The city came under British rule inand its commercial importance continued until the Suez Canal was opened in It further declined when the British built the modern harbor at Colombo in JAFFNA is situated on a peninsula in the northernmost part of Sri Lanka. Separated from India by the Palk Strait, Jaffna and the peninsula are densely populated. There are approximatelyinhabitants here, most of whom are Tamil-speaking people.

Tobacco, rice, coconuts, palmyra palm, and vegetables are grown in the region, and fishing is an important occupation. Industries include those for salt, cement, chemical, and tobacco production, as well as textile weaving and gold filigree work. Elephants, peppers, and other commodities are traded. Remains of the ancient Tamil culture, as well as traditions from the Portuguese and Dutch occupations in the 17th and 18th centuries, are found here.

Located in southern Sri Lanka, on the Indian Ocean, MATARA is 24 miles east of Galle. It has a population of more thanMatara is centered in a region rich with coconut palms and cinnamon trees. An old Portuguese fort is among the sites located here. NEGOMBOwith a population of over , is located on the west coast of Sri Lanka at the mouth of the Negombo Lagoon, just north of Colombo. The city is a fishing center and a market for coconut products and cinnamon; handicrafts include ceramics and brassware.

Many 17th-century Dutch buildings still stand in Negombo. Sri Lanka's international airport is located just outside the city. Situated in southwest-central Sri Lanka, RATNAPURA is 42 miles southeast of Colombo. It is the center of the precious-stone industry. The Buddhist temple, Maha Saman Dewale, is nearby. Ratnapura has a population of over 40, With a population exceeding 52, Trincomalee has one of the world's finest natural harbors. Exports traded here include tea, hides, and dried fish. A railroad terminus and an important road junction, Trincomalee sometimes written Trinkomali is also known for its coconut and rice plantations, and some pearl fishing.

Early Tamil settlers from south India built the Hindu Temple of a Thousand Columns in Trincomalee, but it was destroyed by the Portuguese in On its site, the Dutch built Fort Frederick in Captured by the British inthe city was British naval headquarters in the Pacific theater during World War II. Sri Lanka is a pear-shaped island in the Indian Ocean — 18 miles from India at its closest point.

The country, roughly the size of West Virginiais miles long and miles wide at its extremities, and comprises 25, square miles. Sri Lanka has many spots of scenic beauty and historic interest. Topographically, the island consists of two main sections: Dense vegetation covers a large part of Sri Lanka, particularly the southern and western coasts.

Rubber and coconut trees grow in the midlands and lowlands, and there are vast tea estates in the highlands. Sri Lanka has a varied effect on Westerners who remain on the island a considerable time without a break. People who like hot weather and are active in sports usually enjoy themselves and keep physically fit and mentally alert. Those accustomed to seasonal changes find the tropical climate monotonous and enervating. The climate, except in the mountains, is hot and humid.

Humidity is always high, often in the 90s. The monsoons produce two main rainy seasons. The southwest monsoon lasts roughly from mid-May into early fall. During this period the southwestern part of the island, including Colombo, receives much of its average annual rainfall of inches. The northeast monsoon lasts from about October or November through February. The northern and eastern parts of the island receive virtually all of their average annual rainfall of 60 inches at this time.

Monsoon showers range from gentle to torrential in the Colombo area. December through March are usually the driest months. Because of the massive Mahaweli hydroelectric and irrigation scheme, water shortages and interruptions of electricity during the dry months are less frequent than in the past.

Colombo's climate compares to the hot, humid summers in Washington, DC. Even during the cooler period December and Januarymost Americans depend on electric fans or air-conditioning to keep comfortable. The population of Sri Lanka is Currently it stands at. Most live in the northern and eastern provinces, but many Ceylon Tamils live in Colombo and throughout the island. Most were disenfranchised in Sri Lanka by legislation passed in Because India also refused to recognize them as citizens, the Indian Tamils were considered stateless.

A agreement with India provided for repatriation of many to India and the granting of Sri Lankan citizenship to others on a ratio. InSri Lankan citizenship was extended tostateless Indian Tamils. Most Sinhalese are Buddhists, most Tamils are Hindu, and Moors and Malays are Muslims. Christians can be found in both the Sinhalese and Tamil communities. Racial tension between the Sinhalese and Tamil communities erupted into violence in and continued in varying degrees of intensity untilwhen the government and Tamil rebels announced a cease-fire.

The peace only lasted a few months, however, before Tamil rebels renewed their attacks on government installations.

Sinceover 51, people have been killed, and more thanTamils have fled the island. The year foreign presence on the island Portuguese, Dutch, and British has influenced Sri Lanka's government, jurisprudence, and administration. Sri Lanka became independent in after being a British colony for over years. It initially opted for dominion status in the Commonwealth, like nearby India and Pakistan. But, unlike India and Pakistan, it retained dominion status only until when the island was formally proclaimed a democratic republic and a unitary state with the office of governor-general converting to a ceremonial presidency.

During that period, real power was vested in Parliament and in a prime minister under the British pattern. The constitution proclaimed Sinhala the official language with some provision for the use of Tamil and Buddhism the foremost religion with religious freedom guaranteed to all.

Following the overwhelming electoral victory of the United National Party UNPa decision was made to revamp the constitutional system more along continental than British lines.

The result was the constitution which established an executive and active presidency, abolished the upper house of legislature, and established a system of proportional representation as the basis for future parliamentary elections. The constitution also elevated Tamil to the status of an official national language.

An executive president, elected for a six-year term, serves as commander-in-chief of the armed forces, chief of state, and head of government. The position is based largely on the French model. The president appoints and heads a cabinet of ministers who are responsible to a seat unicameral legislature.

The president's chief lieutenant is the prime minister, who is the leader of the ruling party in Parliament. Communal tension in Sri Lanka has remained high since Julywhen the worst communal violence in the country's post-independence history occurred. Following the killing of 13 members of an army patrol all Sinhalese by Tamil terrorists fighting for a separate Tamil state in the north and east, Sinhalese mobs took to the streets of Colombo and then throughout Sinhalese-majority areas, attacking Tamils and their property.

Hundreds of Tamils were killed in the ensuing violence and tens of thousands were left homeless, as mobs attacked Tamils and their property throughout much of the island.

The riots led to a burgeoning of Tamil militant groups in the north and east and to continued military and political confrontation between the Sri Lankan Government and the Tamil militants.

By mid, the situation had reached an impasse. The government's policy of pressing the insurgents militarily, although attempting to negotiate with Tamil moderates, had not succeeded. In an attempt to break the deadlock, Sri Lanka brought India directly into its communal dispute. Under a July 29,accord signed by the President and the Indian Prime Minister, Sri Lanka made many concessions to Tamil demands, including devolution of some powers to the provinces, merger subject to later referendum of northern and eastern provinces, and official status for the Tamil language.

India agreed to establish order in the north and east and to cease assisting Tamil insurgents. A key element of the accord soon fell apart. The major Tamil militant group, the Liberation Tigers of Tamil Eelam LTTEwithin weeks declared its intent to continue its armed struggle for an independent Tamil Eelam. The 50,strong Indian Peace Keeping Force IPKF found itself engaged in a bloody police action against the LLTE.

After two-and-a-half years of conflict between the IPKF and LLTE, with over 1, deaths on each side, the situation had not completely resolved. By latethe Indian troops were being withdrawn, but the army and LLTE continued to have confrontations.

The peace process fell apart after a few months, when additional demands by the rebels went unfulfilled. After Tamil terrorists attacked two gun-boats and an army base, the government went on the offensive by blockading the Tamil stronghold of Jaffna and attacking rebel positions.

By the end of the death toll from almost 15 years of civil war had surpassed 50, Despite JVP violence, a parliamentary general election was held in February President Premadasa's United National Party won of the seats in Parliament in the first national election held under the system of proportional representation, which had been established by the constitution.

The JVP began asserting itself in mid, capitalizing on opposition in the Sinhala community to the Indo-Sri Lanka Accord, it launched an intimidation campaign. Using terrorist tactics, including assassinations, strikes, and other weapons of intimidation, it brought the country to a virtual standstill several times in and Several thousand people died in JVP-instigated violence and much property, particularly government-owned property, was destroyed. The deaths included government officials, members of political parties who supported the Accord, and innocent civilians.

The government fought back, killing another several thousand people suspected to be JVP party members, supporters, or their families. In latethe JVP party leaders had virtually all been killed or arrested, and the JVP threat appeared to have failed.

On May 1,President Premadasa was killed in a May Day Parade bombing. Prime Minister Wijetunga succeeded him, and called for early elections in August Voters, however, chose a leftist coalition led by the Sri Lanka Freedom Party. Chandrika Bandaranaike Kumaratunga became president. She was reelected in Sri Lanka's legal system reflects the interplay of cultural influences.

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The criminal law is fundamentally of British origin. The basic system of civil law, a legacy of the Dutch, is Roman-Dutch; but personal law marriage, divorce, inheritance, etc. Thus Hindus, Christians, Muslims, and Buddhists have their own family codes. The judiciary is based on the British model. Sri Lanka's judiciary consists of a Supreme Court which is also authorized to give advisory opinions, a Court of Appeals, a High Court, and a number of subordinate courts.

The Supreme Court, composed of a chief justice and six to 10 associate justices, has original jurisdiction on all constitutional matters, as well as on such other matters as election petitions, breach of parliamentary privilege, protection of fundamental rights, and other matters over which Parliament has legislative power.

The Sri Lanka Administrative Service is a direct descendent of the highly regarded colonial Ceylon Civil Service. Each ministry has a secretary, usually a career civil servant, who provides continuity as ministers and governments change. The country is divided into 25 districts, each headed by a government agent GA responsible for regional government activities.

In colonial days, the GA was virtually overlord of a district; today, democracy has brought an increased concern for mass public opinion and socially responsive administration.

An innovation of the government elected in was the introduction of a system of district ministers, senior members of Parliament usually not from the district, who oversee development efforts in the region.

Sri Lanka is a member of the United Nations, World Health Organization WHOand United Nations Educational, Scientific, and Cultural Organization UNESCOas well as the following international bodies: Asian Development Bank, Colombo Plan, Economic and Social Commission for Asia and the Pacific, Group of 77, International Telecommunications Satellite Organization INTELSATNonaligned Movement, World Bank, and World Tourism Organization.

The Sri Lankan capital is the home of the international headquarters of the Colombo Plan, a program to aid the economic development of Asian nations, which was launched at a conference in Colombo in The address is 12 Melbourne Avenue, P. Sri Lanka maintains diplomatic relations abroad in over 30 foreign countries, including Iraqthe People's Republic of ChinaBangladeshPakistan, the PhilippinesGermanyKenyaIndia, and the United States.

There are over 30 foreign embassies in Colombo, including those of AustraliaCanadaCubaEgyptFranceGermany, the Holy See, Japanthe Maldives, Myanmarthe NetherlandsThailandthe United Kingdom and the United States. The outer two-thirds of the flag of Sri Lanka has a dark red background with a gold lion, sword, and bo leaves from the former Kingdom of Kandy. The inner third of the flag has vertical green and saffron bands for the Muslims and Tamils. The flag is bordered and divided in gold. Sri Lanka's artistic and intellectual life is lively in some areas.

There are eight universities, one open university, and two university colleges; both arts and sciences are taught. Facilities include four medical schools. The Institute of Aesthetic Studies is a department of the University of Kelaniya, near Colombo.

Instruction includes art, crafts, music, and dance. The Ministry of Education operates 21 teacher training colleges; of these, four train instructors to teach English as a second language and 17 cover other areas.

The Ministry of Higher Education directs 13 polytechnics and eight junior technical institutes. Curricula and direction at all educational levels are increasingly related to Sri Lanka's development. The Natural Resources, Energy, and Science Authority, established in as the National Science Council, implements central government science policies.

The Sri Lanka Institute of Scientific and Industrial Research CISIR is an autonomous, non-profit, industrial research institute, established by the government in The Tea Research Institute established inthe Rubber Research Instituteand the Coconut Research Institute are all government non-profit organizations. Private schools teach Eastern and Western dance and music. The country has several theaters, a major museum, and many specialized societies. Few art galleries exist, but interest is active in painting, batik, jewelry, sculpture, and indigenous handicrafts.

A national dance troupe performs, and interest in a national theater, and national culture in general, is strong. An active and healthy interest also flourishes in Western music, art, and drama. English-language plays are performed by a few amateur groups in Colombo, and drama groups welcome foreign members.

Concerts of Eastern and Western music also are given occasionally, and Colombo has an amateur symphony orchestra; many foreigners have joined this latter group. Visiting artists regularly perform with the orchestra or give solo performances. Compared with the many developing countries in the region, Sri Lanka's economic potential is high. The island has rich agricultural and mineral resources and is surrounded by a bountiful sea.

Rice is the major domestic food grain crop; improved seeds and yields have significantly reduced the need for rice imports. Garments, many of which are assembled in the free trade zone located just outside Colombo, account for most of Sri Lanka's foreign money exchange locations nj of manufactured goods.

Other industrial exports include refined petroleum products best replacement stock for winchester model 70 precious and semi-precious gems.

Colombo's efficient port has become a major cargo transshipment hub and a significant foreign exchange earner. Tourism, which has been hurt by the security situation, remains an important source of employment and one of the td canada trust stock broker hopes for future economic growth.

The United National Party government has undertaken to reverse many basic economic policies followed by all previous governments since independence. Most significantly, the government has reduced its rice subsidy program and is placing greater reliance on the private sector in promoting economic development. The country relies on considerable international assistance from both multilateral and bilateral aid donors.

Increased foreign investment, the huge Mahaweli irrigation development scheme now beginning to yield results, the successful free trade zones, and the growth of the tourist industry, have helped to reduce the country's serious unemployment problem.

However, the economy has suffered in recent years due to the continuing ethnic conflict and political instability. Sri Lanka has chronic, current account and government budget deficits.

Foreign aid has helped to cover these gaps somewhat, but foreign borrowing also has been significant. Import liberalization, part of the economic reforms, eliminated the scarcities and black-market activities which once plagued the island.

The government's economic priorities are now to bring prices under better control, diversify and expand exports, increase national savings, and maintain the quality of life of its people. Although shortages of basic food items no longer occur, imported products on the local market are often expensive.

The address of the National Chamber of Commerce of Sri Lanka is P. BoxSecond Floor, YMBA Building, Colombo, Sri Lanka. The Federation of Chambers of Commerce and Industry of Sri Lanka is located at the People's Bank Bldg.

Air Lanka offers domestic service. Charter planes and helicopters are also available. The railway system, also a government enterprise, provides a reasonably satisfactory means of reaching a few points of interest on the island. First-class travel, although somewhat rigorous, should be used whenever possible; second-class accommodations frequently are the best available.

The government-owned bus system, which is overcrowded and poorly maintained, normally is not used by foreign residents. Private buses offer little improvement. Rental vehicles with a driver, although relatively expensive, may be engaged for excursion trips. Satisfactory and inexpensive three-and four-wheeled metered taxi service is available in Colombo. Despite such problems as heavy traffic bicycles, bullock carts, other vehicles, and pedestrianslack of spare parts, and indifferent servicing, most resident Americans rely on automobiles for transportation within and outside Colombo.

Sri Lankan roads are generally narrow and inadequately maintained. The island has an extensive network of paved surfaces. Small, right-hand-drive cars are recommended because of the narrow roads. The highest rated gasoline is about 93 octane. The most popular cars include Peugeot, Volkswagen, Mitsubishi, Nissan, Ford, Australia, Germany, U. Parts and servicing are most readily available for Japanese vehicles. Heavy-duty tires and batteries, air-conditioning, tropical radiators, and extra undercoating against rust are worthwhile investments.

Catalytic converters on newer models should be removed, since lead-free gasoline is not available. As in Englandtraffic moves on the left side of the road. Sri Lanka permits import of left-hand-drive vehicles, but for safety and resale value, it is wise to import only right-hand-drive vehicles.

Third-party liability insurance is compulsory in Sri Lanka. Insurance policies are available only through the government-owned and-operated Sri Lanka Insurance Corporation and the National Insurance Corporation. Local telephone service often is interrupted by breakdowns caused by age and weather conditions. Long-distance and international direct-dial services are available to all points in Sri Lanka, India, Malaysia, SingaporeThailand, Australia, Japan, Europe, and the U. Telegraph and cable service, available day and night, is satisfactory.

Telex facilities are available at most good hotels. Airmail service to and from the U. The average transit time is eight to 10 days. Radio broadcasting operates 17 and one-half hours daily, seven days a week. Programs offered by the Sri Lanka Broadcasting Corporation cover local and nse stock market live software subjects and include a substantial amount of Western music, especially on FM.

Programming and schedules follow British format, and some British Broadcasting Corporation BBC programs and news features are relayed on local channels. Broadcasting is in Best odds to win money uk, Sinhala, and Tamil on shortwave, AM, and FM frequencies.

Many interesting and informative programs are presented. Reasonably good worldwide radio reception is available on shortwave. Sri Lanka initiated television transmission in and now has two stations. Each station operates from 5 p. The programs on both channels consist of locally produced shows in English, Sinhala, and Tamil, and reruns of U. Regular, nightly news programs are broadcast in all three languages at different times. Sri Lanka uses the PAL system of color TV; therefore, U.

Color sets are available locally through the duty-free complex; however it is a time-consuming process and purchases require Sri Lankan Foreign Ministry approval. Prices compare favorably with those in the U. Most Americans bring videotape equipment to Sri Lanka. Colombo newsstands sell current international editions of Time and Newsweek. The International Herald TribuneUSA Todayand Asian Wall Street Journal also are available.

Library facilities in Colombo are limited, but improving. The American Center library is designed to meet the needs of Sri Lankan students and academics. The Colombo municipal library system has approximatelytitles in English at any one time, and subscribes to some English-language journals and newspapers.

The British Council's large, 52,volume library includes a good selection of fiction. It subscribes to about periodicals and newspapers. The Colombo Swimming Club operates a small library offering book selections to both children and adult members. A modest number of expensive current paperbacks are available at the large hotel bookshops. Mildew, termites, and silverfish are a serious threat to books not kept in air-conditioned rooms. Valuable volumes should not be brought to Sri Lanka.

Privately owned hospitals, with hour English-speaking Sri Lankan-trained physicians on duty, have outpatient departments, intensive care units, operating rooms, and diagnostic facilities. However, the hospitals are not up to American standards and are utilized rarely, except for routine lab work. Medical problems requiring sophisticated treatment are sent to the nearest adequate medical facility in Bangkok. Embassy maintains a health unit in Colombo for official personnel and dependents.

Some limited care is occasionally provided to unofficial Americans on a fee-for-service basis. Private physicians are the primary source of medical assistance. Specialists from the government hospitals assist when needed. Some specialists are board-certified in the U. Fees for medical care and treatment are reasonable. All dental work should be done prior to arrival in Sri Lanka. Local dentists have been consulted, with satisfactory results, by some members of the American community.

However, dental care is substandard, and no major dental work can be done. Pharmaceutical supplies are not always available locally, so one should have an adequate supply of first aid materials, aspirin, or other necessary items; this includes vitamins and birth control pills.

Gastrointestinal disease is the major health problem here. Hepatitis A is common in the local population. Diarrhea is the most common illness among Americans living in the subcontinent, mainly because of contaminated food and water. City water is not potable and should be filtered and boiled for 10 minutes before using. One should thoroughly cook all meat and wash and disinfect all fruits and vegetables.

Sri Lanka has many kinds of insects. Mosquitoes carry malaria, Japanese B encephalitis, dengue fever, and filariasis. Flies carry filth that cause such endemic diseases as cholera and typhoid. Those coming here for an extended stay should bring a good supply of insecticides, pest strips, insect repellents, and fly swatters. Snakes, both poisonous and nonpoisonous, are found in Sri Lanka. Yards and lawns around the houses must be maintained by keeping grass cut and clearing leaves, what are the risks of buying put options helps to deter nesting of snakes.

Parents with small children must exercise special caution as to safe play areas outdoors. Embassy health unit maintains a stock of snake bite serum, which, if needed, is best administered in a hospital setting. Malaria prophylaxis must be started two weeks before arrival in Sri Lanka. Also, make sure immunizations are up to date, especially those for gamma globulin, rabies, meningitis, and hepatitis B.

Several international airlines fly into Sri Lanka's Katunayake Airport about 20 miles northwest of Colombo one hour by car. At present, no American carriers provide service. Air Lanka is the national airline. A no-cost visit visa, valid for 30 days, will be granted at the time of entry into Sri Lanka to bona fide tourists and business travelers.

Visitors staying more than 30 days easy way to make money in nfs carbon any purpose must pay residency visa fees.

Yellow fever and cholera immunizations are needed if arriving from an infected area. All travelers departing Sri Lanka except diplomats and certain exempted travelers must pay an airport tax, in cash.

Sri Lankan law requires all persons, including foreigners, who are guests in private households to register in person at the nearest local police station. Individuals who stay in private households without registering may be temporarily detained for questioning. This requirement does not apply to individuals staying in hotels or guesthouses. American citizens are advised not to travel north of a line drawn from Puttalam on the west coast through Anuradhapura in the central north and Nivaveli just north of Trincomalee in the east.

Areas north of this line contain many land mines, making travel off paved roads very dangerous. In addition, the LTTE rather than the Government of Sri Lanka is effectively the civil administration in many sections of the north.

Official travel by U. Government personnel to this area is restricted, and their unofficial travel is prohibited. Travel in the east in the area south of the Anuradhapura-Nivaveli line including Trincomalee, Batticaloa and points south poses significant safety risks.

Roads are often substandard, and police, medical and other emergency help is severely limited or not available. Communications within the eastern areas are also limited, with no cell phone accessibility and very limited land-line telephone access. Because of these considerations, the U. Embassy may not be able to provide consular services in a timely manner to American citizens who travel to the north and east.

Sri Lankan customs authorities may enforce strict regulations concerning temporary importation into or export from Sri Lanka of items amortization of stock option expense as firearms, antiquities, business equipment, obscene materials, currency, gems and precious metals. It is advisable to contact the Embassy of Sri Lanka in Washington, D. Americans living in or visiting Sri Lanka are encouraged to register at the Consular Section of the U.

Embassy in Colombo sites about binary option trading obtain updated information on travel and security within Sri Lanka.

Embassy is located at Galle Road, Colombo 3, Sri Lanka. The Embassy's telephone number during normal business hours Monday through Friday is 94 1 The after-hours and emergency telephone number is 94 1 The Consular Section fax number is 94 - 1 The Embassy's Internet address is http: The e-mail address for the consular section is consularcolombo state.

The Embassy in Colombo also covers the Republic of the Maldives. Sri Lanka's monetary unit is the rupee. Strict currency controls require customs declaration of all foreign currency brought into and taken out of the country and severely limit local importation of foreign goods.

Indian, Nepalese, Pakistani, and Sri Lankan rupees are forbidden to be imported into or exported out of the country. The following titles are provided as a general indication of the material published on this country:. The Crisis of the Anglo-American Constitutional Traditions in a Developing Society.

Vikas Publishing House Pvt. University of Hawaii Press, Pioneer Peasant Colonization in Ceylon. North Oxford University Press, Monasticism and Economic Interest in Early Medieval Sri Lanka. University of Arizona Press, Ceylon Yesterday, Sri Lanka Today. Images of Sri Lanka Through American Eyes: Travellers in Ceylon in the 19th and 20th Centuries. Compiled and edited with introduction, commentaries, and bibliography by H. The Rise of the Labor Movement in Ceylon. Duke University Press, Caste and Family in the Politics of the Sinhalese.

Cambridge University Press, Sri Lanka — Third World Democracy. Ethnic Conflict and Reconciliation in Sri Lanka. Economic Developments in Ceylon. The Politics of Ceylon Sri Lanka. Cornell University Press, An Historical Relation of the Island Ceylon. The Story of Ceylon. Buddhism in Sinhalese Society A Study of Religious Revival and Change. University of California Press, The State and Peasant Politics in Sri Lanka. Ceylon University Press Board, Dependent Capitalism in Crisis: The Sri Lankan Economy History a profit options binary trading Buddhism in Ceylon.

The Anuradhapura Period 3rd Century B. Caste Conflict and Elite Formation: The Rise of a Karava Elite in Sri Lanka, Collective Identities, Nationalisms, and Protest in Modern Sri Lanka. Religion and Legitimation of Power in Sri Lanka. An Export Economy in Transition. The Gaullist System in Asia: The Constitution of Sri Lanka. An Autobiography of the Years The Village in the Jungle.

Dilemmas of A New Nation. Princeton University Press, Under the Bo Tree — Studies in Caste, Kinship, and Marriage in the Interior of Ceylon. Cite this article Pick a style below, and copy the text for your bibliography.

Retrieved June 20, from Encyclopedia. Sri Lanka is an island nation-state in the Indian Ocean. It is located kilometers miles north of the equator, off the southern tip of Indiaand has a maximum length of kilometers miles and a maximum width of kilometers miles.

The island has an area of 65, square kilometers 25, square miles and a total coastline of 1, kilometers 1, miles. Sri Lanka is slightly larger than West Virginia. Its capital, Colombo, lies on the country's western coast.

Sri Lanka's population was estimated at Sri Lanka has the slowest-growing population in southern Asia — estimated at 0. The density of Sri Lanka's population is fairly high, at persons per square kilometer per square mile.

In the birth rate was estimated at The majority of Sri Lanka's people live in the rural sector 67 percentin urban areas 22 percentand on plantation estates 11 percent. The infant mortality rate The low fertility rate and high life expectancy has led to a larger increase in the older population than the younger population.

It took most western countries 45 to years for their elderly population to double, while in Sri Lanka this process is expected to take only 2 decades. Sri Lanka is expected to have the third oldest population in Asia in The rising burden of maintaining an aged population could exert considerable restraints on the government's fiscal resources, and the need to provide retirement support income and health care will have serious consequences on the economy as a whole during the next 2 decades.

An important characteristic of the Sri Lankan population is its ethnic and cultural diversity. Approximately 74 percent of the population are Sinhalese, Among the ethnic groups, the Sinhalese were the earliest inhabitants of Sri Lanka and are descendants of the first colonists who occupied the island during the 5th century B. Most of them are Buddhist, and speak a language called Sinhala, derived from several Indo-Aryan languages.

The Sri Lankan Tamils are the descendants of the early Dravidian invaders from southern India. They are predominantly Hindu and speak Tamilone of the market maker forex trading Dravidian languages of southern India.

Indian Tamils are the descendants of laborers brought by the British planters in the history stock market in 1920 boom usa century to work on plantations.

The Muslims are the descendants of early Arab traders who settled in SriLanka during the 10th century. The Burghers are the descendants of the Portuguese, Dutch, and British who occupied the island from the 16th to the midth century. The Burghers are predominantly Christian and speak English as their first language.

Sri Lanka is a developing economy based largely on agriculture, services, and light industry. Agriculture accounts for approximately 21 percent of the gross domestic product GDP and employs 38 percent of the workforce. Agricultural output is divided between cash crops from plantation agriculture and food crops from subsistence agriculture. Cash crops — namely tea, rubber, and coconuts — are largely grown on plantations.

Rice is the principal food crop and the main livelihood for over 70 percent of Sri Lanka's rural population. Manufacturing industries account for approximately 19 percent of the gross domestic product and employ about 17 percent of the workforce. Chief manufactures include textiles, ceramics, petroleum products, vegetable oils, fertilizers, and cement.

The service sector is the largest of the Sri Lanka economy, employing 45 percent of the workforce and contributing roughly 60 percent of GDP. Tourism, banking, finance, and retail trade are the major components of the service sector. The country is endowed with many natural resources. It has an equatorial climate with a high average rainfall.

The land is fertile and suitable for growing a variety of crops, and one-third of the land is arable. Rivers cascading from the central hill country provide energy to generate hydropower, the major source of electricity in Sri Lanka. The country also has rich fishing resources. Sri Lanka's mineral resources include titanium ore, graphite, kaolin, and gemstones. It also has large deposits of unexploited iron ore.

Foreign trade is an important segment of the Sri Lankan economy. Major imports include petroleum, consumables, machinery and capital equipment, motor vehicles, and various manufactured goods. Major exports include garments, tea, rubber, coconut products, foodstuffs, gems, and jewelry. Sri Lanka is the largest exporter of black tea in the world and the third largest producer of natural rubber.

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A variety of gemstones, for which Sri Lanka is world famous, are also exported. Significant quantities of high-grade graphite, for which Sri Lanka is a world leader, are also exported. The industrialized countries taken together as a group accounted for 75 percent of Sri Lanka's total exports in and the United States is the largest single buyer of Sri Lanka's exports, with 39 percent in Other major export markets are the United KingdomGermanyJapanRussia teaChina rubberIndia, and the Middle East.

In terms of imports, Japan is the single largest exporter to Sri Lanka.

Motor vehicles, spare parts, and woven fabrics are the major items imported from Japan. India is the second largest exporter, followed by SingaporeSouth Korea, Taiwanthe United Kingdom, and the United States. Foreign investments are encouraged and several free zones have been established. The country's banking system is money counting games for 1st graders developed, so that both foreign and local banks function in the economy.

Sri Lanka is committed to a free market ideology and has one of the most liberal foreign trade regimes in the world. This contrasts greatly to what the Sri Lankan economy looked like during the first 3 decades after the country gained independence from Great Britain in The economy that evolved in Sri Lanka under British rule was predominantly oriented towards agriculture, with plantation agriculture being the major contributor to the nation's growth.

The 3 plantation crops — tea, rubber, and coconuts — accounted for 30 percent of the gross domestic product in and the bulk of the output was exported. Manufacturing was an insignificant activity in the economy. Banking and commerce were, for the most part, only used to support plantation agriculture. Nearly all foreign exchange earnings were derived from the plantations. The country depended on imports for nearly three-fourths of its food requirements and almost all of its manufactured goods.

The Sri Lankan economy has since become highly diversified; it has rapidly growing manufacturing and service sectors, agricultural activities have been modernized, and the country is nearly self-sufficient in rice production.

The significance of the 3 major export crops tea, rubber, and coconuts as the main source of export earnings has fallen from 90 percent in the s to 16 percent in and the significance of manufacturing has risen from 1 percent of exports in to 60 percent in These changes in the structure of the Sri Lankan economy are a result of varying economic policy measures adopted by the government since independence.

Development strategies that shaped the Sri Lankan economy over the last 5 decades may be distinguished under 2 eras: During the first era, development policy focused on achieving the objectives of equity and economic growth.

The instruments adopted to achieve economic growth were aimed at import substitution industrialization, both in manufacturing and foodstuffs. The key measures used to achieve this growth strategy were the imposition of various restrictions on imports, and the encouragement of domestic production.

Extensive social welfare programs such as price subsidies on food, statutory price controls on consumer goodsand the provision of free education and health services were the instruments used to achieve greater equity. The welfare programs achieved significant improvements in the area of human development, including lower mortality rates, increased life expectancy, and high literacy rates. However, high welfare expenditures restrained the nation's capital growth and ability to invest, slowing economic growth and causing high unemployment and low wages.

During the period, per capita gross domestic product grew only at an average of 0. The achievements of the import substitution policies were even less noticeable, except in the production of rice and subsidiary food crops.

With a worsening trade balance crisis, most newly established industries operated well below capacity due to a shortage of imported goods. This, coupled with increased government participation in industrial development, hindered industrial growth and the ability to remain commercially viable.

The continued government intervention in all spheres of economic life reached its climax at the end of the first policy era. The second era of Sri Lankan economic development post marked a shift towards a free market economy. The strategy aimed at liberalizing the economy from excessive government controls and it chose the private sector as the engine of growth. Policies were designed to accelerate economic growth by stimulating private investment through various incentives and also to increase the country's foreign earnings by promoting export-oriented economic activities.

The liberalization policies, pursued under the watchful eye and participation of the International Monetary Fund and the World Bank, met with success at the beginning. Stimulated by enhanced levels of foreign aid and investment, the economy was successful, recording real growth rates of about 6 percent per year until During the following 5 years, however, there was a marked deceleration of growth caused mainly by the disruptive effects of the ethnic conflict on economic activities.

Gross domestic product grew bears make money lyrics an annual average of 2. The transition to a free market economy based on a liberalized trade and exchange rate regime has brought benefits to the Sri Lankan economy. Unemployment, a problem for decades, has reduced significantly, and remains at historically low levels 8 percent in Nonetheless, the high levels of inflationfueled by the sharp deterioration of the Sri Lankan currency, combined with the mounting cost of civil war has raised the cost of living to very high levels.

The soaring cost of living has made many Erfahrung daytrading Lankans struggle to satisfy their basic needs. Over 45 percent of the population depends on benefits under the income supplement programs initiated by the government.

The balance of payments problem remains unresolved. The persistent trade deficit has led to increased reliance on foreign aid to meet the country's import requirements, leading to an inevitably mounting foreign debt. Foreign debt as a percentage of the gross domestic product, which accounted for 21 percent ingrew to 75 percent inand amounted to 59 percent in When Sri Lanka obtained its independence from Britain in it had an educated electorate conscious of its voting rights and the concept of majority rule.

The judiciary was respected and the rule of law was well established. The political party system was also established with the United National Party UNP as the foremost party of the time. Sri Lanka also had a written constitution incorporating some of the principles of the British Westminster system of government. There is a unicameral Parliament with members elected to 6-year terms.

The president is popularly elected to a 6-year term and is the chief executive. The UNP was in power for 8 years until it lost the election to Sirimavo Bandaranaike. His Sri Lanka Freedom Party SLFP -led coalition swept into power on the promise to make Sinhala the national language.

This created disquiet among minorities, especially among Tamils. Tamil leaders opposed the introduction of Sinhala as the official language because they wanted to speak Tamil; their opposition soon led to violence. The seeds of the separatist war in Sri Lanka can be traced to incidents that occurred in But the conflict grew into a large-scale military confrontation only afterwhen a group of Liberation Tigers of Tamil Elam LTTE followers ambushed Sinhalese troops.

The LTTE, who are the Tamil protagonists of the war, have used terrorist methods to finance and promote their cause. They have assassinated moderate Tamil leaders, including President Premadasa, and several Sri Lankan ministers and party leaders.

They also killed Indian prime minister Rajiv Gandhi because he withdrew his support of the LTTE. Another serious problem was the emergence of a Sinhalese youth revolutionary party called the JVP, which staged an armed insurrection inlasting for 2 years and followed by 3 years of sporadic outbursts. The JVP resurrected itself in the late s with a subtle form of urban terrorism, but it was brought under control by a ruthless program of suppression by the government. Both the LTTE and the JVP have been serious impediments to steady economic growth in Sri Lanka.

However, Sri Lanka has been endowed with a very strong democratic tradition which has managed to survive these major conflicts, even during periods of poor economic management. The 2 dominant parties during 50 years of independence have been the UNP conservative and the SLFP socialist -left, and more recently center-left.

The 2 political parties have alternated in sites about binary option trading of power for half a century, with the UNP heading the government from totoand to An SLFP-led coalition government was in power from totoand since as a coalition called the Peoples Alliance PA.

The UNP regimes during the period to placed emphasis on private sector participation with several ongoing subsidized programs such as free education, free health care, village land settlement, and colonization. The SLFP regimes continued the welfare programs and moved increasingly to public ownership and nationalization with limited private sector participation. In the early and the mids, they placed strict restrictions on imports and currency movement.

In the UNP government came into power and decided to run an open economy with few restrictions. The private sector became the main engine of growth. The rupee was devalued by 46 percent from its former artificial value. This immediately stimulated growth and received the backing and financial support of the World Bank. This UNP government lasted for 17 years.

When the SLFP-led coalition known as the Peoples Alliance was elected to government init accepted the importance of this open market economy as a positive growth strategy for the country. A short time before the end of the first term of the Peoples Alliance inthe LTTE attempted to assassinate the president of Sri Lanka, Chandrika Bandaranaike Kumarathunga.

The bomb caused damage to stock market today compared to 1929 eye but she survived, and her party was elected for a second term.

The PA has had a very difficult period in government because of the financial and political pressures generated by the escalation of the armed conflict with the LTTE. The election itself generated a degree of conflict never experienced before in Sri Lankan politics, but democracy survived as it had in every one of the elections held after The major source of government revenue in Sri Lanka is taxes 86 percent.

However, unlike the United States, the contribution of income taxes to government revenue is negligible, at 13 percent, while indirect taxes dominate government revenue. There are 3 major sources of indirect taxes: The GST is a recent addition to the tax system introduced in Aprilreplacing the business turnover tax.

The GST is levied on a value-added basis at a uniform rate of GST revenue accounted for 26 percent of the total tax revenues in An excise tax, which contributed 23 percent of the total tax revenue during the same period, is levied mainly on liquor, tobacco, petroleum, and motor vehicles. The third important source of government revenue, the NSL, was initially introduced as an interim measure to finance the rising cost of war in the north and the east.

It has become an important contributor to national tax revenue, contributing The NSL is levied at a rate of 6. Taxes on international trade account for 16 percent of the total tax revenue.

With the liberalization of trade and restructuring of the tariff regime, which began in the late s, revenue from best long term forex signals on foreign trade has been declining.

The personal income tax PIT rate in Sri Lanka has 4 brackets, ranging from 10 percent to 35 percent. The PIT's contribution to the government tax revenue is small about 1 percent of gross domestic product and is lower than most other countries. The economy's high dependence on subsistence agriculture, low levels of income and tax compliance, and inefficient tax administration are the key contributors to low levels of PIT revenue.

The corporate income tax CIT in Sri Lanka of 35 percent flat rate is relatively modest and is similar to the rates in other Asian economies. However, the CIT tax yield in Sri Lanka is quite low, as many firms are offered tax incentives to encourage investment.

Sri Lanka has a well-developed transport system, including a road network of approximatelykilometers 62, miles. A rail network consisting of about 1, kilometers 1, miles of tracks links Colombo with the rest of the country.

Road networks are under severe strain due to the rapid increase in the number of vehicles since the s. The number of registered vehicles nearly tripled fromin the mids to 1. With a rising number of vehicles, and the need for a more efficient road network to facilitate the movements of goods and services, the government is actively engaged in improving, rehabilitating, and extending the existing network.

Sri Lanka has 14 airfields, the largest of which is the Katunayake International Airport, the principal gateway to Sri Lanka. The country is serviced by 32 airlines, both domestic and foreign, and the national carrier, SriLankan Airlines, handles about 56 percent of international passengers to meaning of swap in forex trading from Sri Lanka.

It has scheduled operations biggest emerging market stocks 35 destinations in 26 countries covering Australiathe Indian subcontinent, the Far East, Europeand the Usaa stock trading reviews East.

The Sri Lanka Ports Authority SLPA is responsible for operating the ports. The SLPA operates 4 major ports in Colombo, Galle in the southTrincomalee in the eastand Kankasanturai in the north. In addition, limited shipping facilities are provided by the Ceylon Shipping Corporation and by several private sector shipping companies.

A major restructuring of the cargo handling facilities in Colombo port is now taking place in conjunction with the British PNO company. Hydropower is the major source of electricity, accounting for 66 percent of the nation's electricity supply. One of the main sources of hydropower is the gigantic Mahaweli Scheme, which has harnessed the flow of Sri Lanka's longest river in several stages. The remainder is generated through thermal power 34 percent and most recently, wind power. Electricity generation and distribution has traditionally been a government monopoly.

However, the private sector has become much more involved in power generation during the past decades. Telecommunications is the fastest growing sector in the country. During the first half ofthe telecommunications sector grew by 11 percent.

Sri Lanka Telecom Ltd.

SLT is the major supplier; its network provided 44, new telephone connections during the first half ofwith total network subscriptions ofThe demand for telephones is growing much faster than supply: To meet rising demand the SLT is expanding its capacity with assistance from international donors.

In addition to the SLT subscriber network, there are 4 cellular phone operators with a subscription ofOther service providers include wireless local loop telephones 2 operators withsubscribersdata communication services such as Internet and e-mail 15 operators with 32, subscribersand public phones 6 operators with 7, public phone booths.

It also reflects the transition of the agriculture-dominated economy to a more diversified one with growing industrial and modern service sectors. Inagriculture accounted for half the gross domestic product and by the yearits significance was reduced to one-fifth of the gross domestic product. The contribution of internet money earning in sri lanka more than doubled from about 11 percent to 19 percent while the service sector expanded significantly from 39 percent to 60 percent during the same period.

Sri Lanka is foreign money exchange locations nj in resources, both natural and human.

It has several unexploited mineral resources such as iron ore and underexploited mineral and fisheries resources with substantial potential for future growth.

Another area with substantial growth potential is tourism, which is interrupted by the prolonged civil unrest in the economy. Agriculture is the most important sector of the Sri Lankan economy.

Even though its contribution to the gross domestic product declined substantially during the past 3 forex steam 8 review from 30 percent in to 21 percent init is the most important source of employment for the majority of the Sri Lankan workforce. Approximately 38 percent of the total labor force was engaged in agriculture in In the subsistence sector, rice is the main crop and farming rice is the most important economic activity for the majority of the people living in rural areas.

During the last 5 decades the rice sector grew rapidly and output more than tripled, reaching the highest ever output of 2. Increases in the area under cultivation, and improved productivity due to the modernization of agriculture are the main reasons for an increase in production.

The rehabilitation of Sri Lanka's extensive ancient irrigation network and massive new investment in construction and maintenance of irrigation infrastructure led to a large increase in the area under rice cultivation. Betweenthe area used to grow rice increased 6 times tohectares. The modernization of farming methods, such as the use of high-yielding seeds, tractors, and chemical fertilizers also led to increased productivity in the rice sector. Betweenrice yield per hectare doubled from 1, kilograms to 3, kilograms.

In addition to rice, various other food crops are produced for local consumption. They include yams, pulses, grains, vegetables, and fruits. Most of these crops are cultivated in family gardens, except for potatoes and sugar.

Sugar cane is cultivated in the dry zone, and Sri Lanka produces only 15 percent of what it consumes domestically. The major plantation crops of tea, rubber, and coconuts continue to figure prominently in the economy of Sri Lanka; however, the contribution of these commercial crops to gross domestic product declined from Tea, the prominent crop of the plantation sector, grows in many parts of the wet zone, and in particular in the central hill country. Sri Lanka is famous for its high quality black tea, and is the largest supplier in the world.

The United Kingdom, Russia, and the Middle East are the major export markets. The second major commercial crop is rubber, growing in the ridge and valley country of the wet zone interior. Ofhectares under cultivation, about 80 percent was being tapped harvested and in A sizable proportion of rubber production is used in the domestic manufacturing sector 56 percent in and the remainder is exported.

China is traditionally the major buyer of Sri Lankan rubber.

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The performance of this sector has been subject to instability due to unfavorable movements in world prices. Competition from synthetic rubber producers has caused rubber prices to drop. However, with rising petroleum prices the major ingredient for synthetic rubber there is a chance for world rubber prices to improve. The third commercial crop, coconuts, is grown mainly in the hinterland of the western seaboard.

Production in accounted for 2, million nuts, the highest output since Coconut mainly coconut milk is a major ingredient used in food preparation in Sri Lanka, and nearly 65 percent of the output is consumed locally. The remainder is exported in the form of kernel products desiccated coconut, coconut oil, copracoconut cream, and coconut milk powder.

Forestry and fishing are less important components of the economy. Forests in the dry zone were cleared for settlement and agriculture early on. Unsustainable agricultural practices such as chena cultivation and logging resulted in land degradation and a reduction in the size of forest reserves. The country has abundant fishing resources, with an exclusive economic zone covering oversquare kilometersmilesa coastline of about 1, kilometers 1, milesand a massive network of inland water reservoirs suitable for fish farming.

However, this potential has not yet been exploited. Most marine fishing is concentrated in coastal areas, which account for about 12 percent of the exclusive economic zone.

Total fish production in was estimated at thousand metric tons, and the contribution of this activity to gross domestic product was about 3 percent in Fishing is a traditional livelihood for people living in coastal areas: A slow-growing sector, fish production increased at an annual average of only about 3 percent between and Poor production is mainly due to a lack of technical knowledge and equipment. The livestock sector in Sri Lanka is small, consisting mainly of the dairy and the poultry subsections.

Unlike in the United States, where dairy production takes place on large farms, in Sri Lanka dairy farming is a small-scale domestic activity. Total milk production in accounted for million liters, sufficient only to meet about one-fourth of local needs.

The remainder is imported in the form of powdered milk in54, metric tons of milk powder was imported. An important development in the livestock sector was the rapid increase in the poultry production. In approximately 57 million metric tons of poultry meat was produced, increasingly becoming a common source of animal protein in Sri Lanka.

Manufacturing accounts for 16 percent of the gross domestic product and employs nearlypeople. The textile industry is the largest of Sri Lanka's industries, contributing 63 percent to industrial sector growth Other major manufacturing industries include processed diamonds, food and beverages, light engineering, chemicals, petroleum, rubber and plastics, and machinery and equipment. The manufacturing sector that evolved under the import substitution development strategy in the s to cater mainly to the domestic market has transformed into a sector catering to the foreign market.

Much of the industrial output is exported and it is the single major export earner in the economy inindustrial exports accounted for 54 percent of total export earnings.

This remarkable achievement is attributable to the policy reforms introduced during the post period. Under the reforms, the private sector was encouraged to participate in export-oriented industries through various incentives, and several free zones were established.

This resulted in a significant inflow of foreign investment; the private sector emerged as the major contributor to industrial output. Overall, market-oriented policy reforms introduced during the post period have led to far-reaching changes in the structure and performance of the manufacturing sector. Mining is a minor economic activity contributing about 2 percent of the gross domestic product The country's mineral extraction industries include the mining of gemstones and graphite; excavation of beach sands containing ilmenite and monazite; and quarrying quartz sand, clay, and salt.

Gem mining is traditionally the most important activity, producing high value gem-stones such as sapphire, ruby, and topaz, and a variety of semiprecious stones, most of which are exported.

Sri Lanka leads the world in high-grade graphite mining. With the lifting of import controls and the government monopoly in the importation and distribution of essential consumer goods during the post period, the trade sector expanded rapidly.

Domestic trade accounts for half the value of the trade sector. Increased participation by foreign firms in domestic trade in Sri Lanka is a relatively recent phenomenon, with international food franchises such as McDonald's and Pizza Hut in operation. Numerous small outlets including street stalls serve the retail trade, and in the major cities there are large shopping centers and supermarkets. Banking, insurance, and real estate accounted for 8 percent of gross domestic product in This sector expanded rapidly following the policy reforms that dismantled the virtual government monopoly in the insurance industry and lifted the restrictions in the banking industry.

The increased incentives for the private sector led to the emergence of several new insurance companies and banks. A total of 6 new local banks were established and 11 foreign banks opened branches. The banking system consists of 11 local and 16 foreign banks. Two development finance institutions and several merchant and investment banks are also active participants in the financial markets in Sri Lanka. In addition, 22 financial institutions providing credit facilities are in operation.

The Sri Lankan financial system comes under the regulation of the Central Bank of Sri Lanka, which is the monetary authority of the country. Tourism is an important activity with potential for growth.

The country known as the paradise in the Indian Ocean offers a diversity of environments and tourist attractions, from tropical beaches and arid lands to lush forests, tea plantations, and a rich archaeological heritage. Promotion of tourism in Sri Lanka began in the late s with the establishment of the Ceylon Tourist Board.

Between andthe number of tourist arrivals grew rapidly at an annual average rate of almost 24 percent, reaching a peak ofbefore declining toin as a result of the civil unrest in the country.

As the political violence in the country intensified, international tourist arrivals continued to fluctuate with a general trend of decline. Tourist arrivals increased toin The majority of tourists to Sri Lanka come from Western Europe 65 percentAsia 26 percentand North America 5 percent. One feature of the Sri Lankan economy, both in the past and present, is the high dependency on foreign trade. The country's dependency on trade, measured by the.

Trade Dependency Ratio TDRdefined as the ratio of the sum of exports and imports to gross domestic product, stood at 66 in compared with a TDR of 33 for the period The changing degree of trade dependency evident in the post-liberalization era has been accompanied by significant changes in the structure of Sri Lankan foreign trade.

The dominance of tea, rubber, and coconuts, which accounted for 74 percent of the total exports inhad fallen to 21 percent in Industrial exports have become the major contributor to export earnings with their share rising from 14 percent to 76 percent during the same period. Of industrial exports, textiles and garments are the leading sub-category, contributing 68 percent to total industrial exports in The balance consisted of machinery and equipment 6 percentrubber-based products 5 percenttravel goods and processed diamonds 4 percent eachpetroleum products and footwear 2 percent eachcrustaceans and mollusks and ceramic products 1 percent eachand other industrial products 7 percent.

Despite the changes in the structure of exports, tea continues to be the leading export with a share of 65 percent of total agricultural exports while textiles dominate the industrial exports with a share of 67 percent of the total industrial exports.

Intermediate goods dominate Sri Lanka's imports 51 percent of total importsfollowed by investment goods 27 percentand consumer goods 21 percent. This is in contrast to the composition of imports in the pre-liberalization era, which was dominated by consumer goods 50 percent of total imports infollowed by intermediate goods 36 percentand investment goods 12 percent.

Rice, flour, and sugar dominated consumer goods in the past, accounting for 80 percent of total consumer goods imported. Their significance, however, fell to 21 percent in This changing structure of imports reflects the new economic environment resulting from the economic reforms introduced in The improvement in the domestic supply of rice and other food items helped to limit food imports.

The expansion in the industrial sector resulted in higher imports of intermediate goods. Developments in infrastructure facilities, construction and the transport sector, combined with increased use of advanced technology, increased the import of investment goods. The destination of Sri Lankan foreign trade also has changed.

The United States has become the single most important trading partner, and has continued to be the largest single buyer of Sri Lanka's exports accounting for 39 percent of exports in Garment exports accounted for 74 percent of total exports in The United Kingdom accounted for 13 percent, while Germany accounted for 5 percent of Sri Lanka's exports.

On average, one-third of the Sri Lankan imports come from the industrial countries. Japan is the largest source of imports to Sri Lanka, with 10 percent in India is the second largest exporter with 9 percentfollowed by Hong Kong and Singapore 8 percent eachSouth Korea 6 percentTaiwan, the United Kingdom, and the United States.

Wheat, gold, agricultural equipment, and textiles are among the major items imported from the United Kingdom, while wheat accounted for 31 percent of imports from the United States. Textiles, tools and accessories for the garment industry, and fruits are the other major items imported from the United States. Sri Lanka's trade with the rest of the world has changed in terms of composition, direction, and volume.

However, the country has not been able to solve its fundamental problem, the unfavorable trade balance. As exports continued to grow, so did imports. Despite the persistent unfavorable trade balance, the country has managed to maintain its import levels with foreign assistance, capital flows, and an important and growing source of foreign exchange: Prior to policy reforms, the fortunes of Sri Lankan exports depended primarily on the movements of world prices for the 3 major export commodities.

While the export sector has diversified, the dependence on trade has also increased markedly. As the country's trade relations with industrialized countries rises, the Sri Lankan economy is vulnerable not only to changes in price levels of the major exports, but also to fluctuations in the levels of economic activity in industrialized countries. With the liberalization of the foreign exchange rate regime inwhich changed from a fixed exchange rate regime to a flexible one, the value of the Sri Lankan currency has continued to fall against major currencies.

The Sri Lanka rupee R which was With the high dependence on imports, the falling value of the currency means that the prices of imports continue to rise, pushing up domestic inflation. Sri Lanka has an active stock market, the Colombo Stock Exchange CSEthe origin of which dates back to the 19th century. Share trading in Sri Lanka began in when the Colombo Brokers Association commenced the trading of shares in limited liability companies. Share trading grew since then and Colombo had a very active share market throughout the 20th century except during the s and s where a spate of nationalization, including the insurance companies and plantations, effectively reduced the trading to insignificant proportions.

This decline was short lived, and the stock market recovered quickly following the policy reforms introduced in the latter part of s, which created free and open market ideals where the private sector was given the key role in economic activities. Today the exchange has companies listed with a market capitalization of approximately 10 percent of gross domestic product.

The wealthy, representing those engaged in commerce and industry, are largely concentrated in urban areas, while the poorest live on plantations and in rural areas. While the rich live in luxury, many urban poor live. The urban poor in Sri Lanka are found mainly in the capital, Colombo.

The majority of the Sri Lankan population live in rural areas, and the major source of wealth among them is land. Landlessness and unequal distribution of land are key determinants of rural poverty. Those living on plantations are laborers with no access to land ownership or alternative employment opportunities.

They live in sub-standard houses supplied by the owners of plantations. A fourth group of poor, those displaced by the continuing war in the north and east, live in various refugee camps with no access to any amenity or opportunities. The overall degree of disparity in wealth is reflected in the distribution of incomes.

The wealthiest 20 percent of the population account for over 52 percent of the nation's income while the poorest 10 percent account for only 2 percent.

Disparities in wealth have risen steadily during the post period, a result of policy reforms that paved the way for more wealth generation through the increased participation of the private sector. An important byproduct of the policy reforms was the soaring inflation induced by the falling value of Sri Lankan currency, raising the cost of living of the poor disproportionately. Meeting basic needs is a struggle to the poor, because average Sri Lankans spend over 40 percent of their income on food alone.

Rising poverty has led to considerable social unrest; strikes in work places and protest rallies are common occurrences. The government maintains several subsidy programs to improve the position of the poor.

Over 45 percent of the population benefits from one such income supplementary program called Samurdhi. Another, the dry ration program, is aimed at helping displaced families of the north and east due to the continuing civil war. International agencies such as the World Bank and Asian Development Bank have sought to help Sri Lanka reduce poverty.

Several funded projects have directly targeted the poorest segments of the population. Despite low per capita income levels, and high levels of the incidence of poverty, the quality of life in Sri Lanka is relatively high when compared with its neighbor, India. According to the Department of Census and Statistics, the labor force in Sri Lanka is about 7 million and the total number of employed persons is 6. The unemployment rate is at around 8 percent While the overall unemployment rate is lower than in the past which was about 15 percent inunemployment among youth is relatively high.

Of the total workforce, Women play an important role in the economic life of Sri Lanka. The largest concentration of women in professions is in the areas of teaching, nursing, and clerical work. In the plantation industry, women make up 68 percent of the workforce and, in the garment industry, about 90 percent of the workforce. The basic minimum age for employment in Sri Lanka is 15 years, and the government has enforced laws to prevent child labor.

The forced or bonded labor of children is prohibited. Despite the laws governing child labor, underage children work as street vendors and hold menial jobs in tile factories, coir-making operations. Poverty leads most of these children to work. According to a government study, about 60 percent of the employed children are secondary income earners, contributing as much as percent of household income.

The constitution of Sri Lanka guarantees the right of workers to organize and establish labor or trade unions, except those employed by the security forces and members of the judiciary. All public and private sector employees possess the right to bargain collectively.

The Department of Labor provides conciliation and arbitration services to resolve labor disputes. Although trade union freedom is substantial, it has been subject to periodic modification or curtailment during times of political strife. In Sri Lanka, there is no universal basic minimum wage, and the minimum wages differ from industry to industry. Sector-specific minimum wages are set by wage boards. There are about 39 wage boards, which set minimum wages for more than occupations in industry, commerce, services, and agriculture.

Remuneration tribunals also set minimum wages in some cases. In Sri Lanka, working conditions and workers' rights are well protected by legislation. However, disruptions in the workplace are common. In recent years there were a number of labor actions such as strikes and protests. The rising cost of living has driven many workers to demand higher wages. There are instances where even those in the medical profession have gone on strike for higher wages.

Because of the inability of most workers to make ends meet, many Sri Lankans seek employment abroad. The total number of Sri Lankan workers abroad was estimated to be aroundinof whom nearly 90 percent are employed in the Middle East.

The legendary Sinhalese Prince Vijaya colonizes the north-central part of Sri Lanka. The king of Anuradhapura, Devanpiya Tissa, embraces Buddhism. Sinhala kingdom is invaded by Cholas from southern India and Elara becomes king. The British are invited by the Kandyan chiefs to usurp the king, gaining control. They maintain a colony in Sri Lanka until the 20th century. Jayawardane becomes the first president of Sri Lanka. Riots in response to the ambush and killing of 13 Singhalese soldiers by Tamil Tigers.

Since independence, despite low levels of per capita income, Sri Lanka has achieved an impressive human development record, with many of Sri Lanka's social indicators comparing favorably to those of more advanced economies.

The country has broken away from a public-sector -dominated, highly regulated economic system and has laid the foundation for dynamic growth based on a free market, liberalized trade and exchange rates, and deregulated foreign investment. This transition has led to rapid economic growth, a significant reduction in the level of unemployment, and a rise in the level of per capita income. However, the impressive growth of the economy evident during the period has generated increasing economic inequality.

The soaring inflation fueled by the deterioration of the value of the Sri Lankan currency has worsened the relative position of the poor. Despite the reduced levels of unemployment and the increased opportunities, nearly half of the population depends on government subsidies to meet their basic needs. The balance of payments, a fundamental problem of the economy that has persisted since the s, has continued to worsen. Mounting foreign debt and the debt servicing obligations has added further burden to the already critical balance of payments.

The slowdown in the pace of economic growth over the last 2 decades, coupled with the rising costs of the civil war, seriously threatens the economy's ability to meet the challenges and changing socioeconomic needs of its population. With a rapidly aging population, the need for more resources to provide health care and income support will exert considerable pressure on the government's fiscal resources and the tax system during the coming decades.

The solutions to most of the burning problems, and those bound to emerge in the near future, lie in the country's ability to achieve sustained levels of long-term economic growth.

The continuing civil conflict poses the biggest obstacle to the country's growth prospects. The need for an immediate solution to the year-old civil war is imperative.

Given that the Sri Lankan economy managed to realize an average growth rate of about 5 percent during the last decade in spite of severe interruptions caused by the civil war, lasting peace would undoubtedly bring prosperity to the nation.

Central Bank of Sri Lanka.

Department of Census and National Statistics DCSSri Lanka. Economist Intelligence Unit, Embassy of Sri Lanka Online. A Society in Transition. Syracuse University Press, SriLanka Association of Economists, Facets of Development of Sri Lanka since Independence. University of Queensland, FY Country Commercial Guide: Sri Lanka rupee R. One rupee equals cents. There are coins of 1, 2, 5, 10, 25, and 50 cents, and 1, 2, 5, and 10 rupees.

There are bills of 10, 20, 50,and 1, rupees. Textile and apparel, tea, gems and jewelry, coconut products, rubber and rubber-based products, and spices. The press and media are fairly free in this island nation despite a deadly war between the Sinhalese-dominated government and the separatist Tamils fighting under the aegis of the militant Liberation Tigers of Tamil Eelam LTTE.

Since the mids, when the conflict started, there have been times of severe media censorship affecting the course of the war. Sincewhen a new government led by Chandrika Bandaranayake Kumaratunga took office promising to uphold an Election Manifesto that would assure fundamental freedoms — including freedom of the press — conditions improved markedly, although censorship restrictions were re-imposed in June London-based Amnesty International AIwhose representatives were specially invited to Sri Lanka in October by the country's Attorney General of Sri Lanka to investigate reports of a mass grave in Jaffna, has noted a marked improvement in the human rights situation in Sri Lanka as compared to the "widespread pattern of gross and systematic violations" of the pre period.

There is no room for complacency, however, as AI and other bodies like the Physicians for Human Rights have been concerned about the "apparent failure" of the Sri Lankan government to live up to its international commitment to human rights and its failure to bring the perpetrators of past human rights violations to justice. The ethnic Sinhala form the overwhelming majority 69 percent of Sri Lanka's population, which traces its origin to the migration of an Indo-Aryan group from North India in the sixth century B.

In the fourth century B. After Buddhism split into Mahayana and Theravada sects in India, the Sinhalese adhered to Theravada, which is the faith that endures to this day among the Sinhalese majority. As Buddhism disappeared from most of India, it remained strong in Sri Lanka, where the adherents of that faith from mainland southeast Asia particularly from Pegu in lower Myanmar turned for continued guidance.

Today, Sri Lanka boasts more than 6, Buddhist temples, some of them more than 1, years old including the famous Daladwa Maligawa, which houses the Buddha 's Tooth; approximately 55, monks live in Sri Lanka as well.

And although the country's constitution proclaims secularism, the government continues to Theravada Buddhism the premier role as Sri Lanka's national religion. The second most populous ethnic community in Sri Lanka is the Tamils, who trace their ancestry to the influx from Tamilnadu during the British colonial times as plantation laborers. There are other Tamils who trace their ancestry to groups of Dravidians from South India, who invaded the northern and eastern parts of the island, possibly from the eleventh century A.

In the colonial era, the southern coastal areas first came under Portuguese control in the beginning of the sixteenth century, a situation that remained in place for a century and a half. Most of the Catholics who live in Sri Lanka trace their ancestry to those who were converted to that faith by the Portuguese.

In the Dutch took over from the Portuguese and maintained colonial control until At that time, Great Britain realized the strategic importance of the island for the growing British empire and made Sri Lanka or Ceylon, as it was known then another piece of the still-expanding British dominion.

Britain formalized its possession at the Congress of Vienna in The British administered Sri Lanka separately from their Indian Empire, relinquishing control over the island nation inone year after they left the Indian subcontinent.

The government's relationship with the press in Sri Lanka at various points in the last half a century can be best understood by following the chronological landmarks in the conflict between the island nation's two principal communities: Since independence, and especially since aboutSri Lanka's politics have been rocked by a festering, often violent, conflict between those two communities.

The conflict has compelled the government to impose a variety of restrictions on constitutionally guaranteed fundamental freedoms, including freedom of the press. At various times, censorship has been imposed on newspapers as well as on the electronic media; journalists have been physically assaulted, a few even killed; and there have been court confrontations between the journalists and the government.

A very active Free Media Movement and the Editors Guild, assisted by the New York-based Committee to Protect Journalists CPJ have intervened with the government at various times, with some success. For Tamils, most of whose ancestors who were brought to the country in the nineteenth century by the British to work on the tea estates in the central highlands, the amendment to the Parliamentary Elections Order in Council in eliminating their franchise rights came as a shock.

Before independence, many Tamils had played an important role in the government, largely because of their proficiency in English. The Tamils felt further alienated when Prime Minister S. Bandaranaike was elected in on a platform that promised to make Sinhalese the country's only official language.

When he took office, the Official Language Act made the campaign promise a reality. In and inSri Lanka and India agreed to extend citizenship to some of the Tamils;sapproximatelyobtained Sri Lankan citizenship at that time, while approximatelychose Indian citizenship. Of the latter, about 85, who accepted the Indian offer but still decided to stay in Sri Lanka became "stateless," without a passport or any official identification; these people were often subject to harassment by the security forces.

They could not own land and had no right to vote. Subsequently, as the U. State Department Report on Human Rights for observed, "the struggle for cultural affirmation, political representation, economic advancement and linguistic parity between Sinhalese and Tamils ended in violence and armed conflict.

The demand by some Tamil groups for an independent Tamil state called 'Eelam' became the overriding political issue in Sri Lanka. The increasing Tamil discontent gave rise to extremism as the "Tigers" began their antigovernment activities with the murder in of the Tamil mayor of Jaffna, who had been cooperating with the Sinhalese government.

This was followed by scores of murders of police officers, politicians, and bureaucrats. The government made some efforts to meet the Tamil demands. For example, the Constitution of recognized Tamil as a "national language" for public administration and the courts, but the Tamils remained dissatisfied because their language was still not recognized for university admissions or public office.

Also, the government promised to establish regional councils with substantial autonomy, but such councils failed to materialize. Bythe conflict assumed ominous proportions with a phenomenal increase in killings on both sides. Over the next two years, nearlyTamils fled to South India, where the Tamilnadu government housed them in camps. India's mediation in the dispute marked the next several years. Then Indian Prime Minister Rajiv Gandhi's proposals for the devolution of authority in the Tamil areas were rejected by the LTTE leader, V.

Prabhakaran, who returned to Jaffna and launched a new offensive. The Indo-Sri Lankan Accord of July 29,between Sri Lankan President Junius Jayawardene and Rajiv Gandhi included a peace plan providing for the amalgamation of the provincial councils in the north and the east, repatriation of theTamils who had fled to South India afterand an Indian Peace Keeping Force IPKF to oversee compliance of the plan in Jaffna.

The IPKF's efforts to disarm the LTTE failed miserably, and it decided to withdraw from Sri Lanka beginning July 28, Rajiv Gandhi himself became a victim of the LTTE when an LTTE suicide bomber assassinated the Indian leader at an election rally in Tamilnadu on May 21, In the two years following Gandhi's murder, Sri Lanka lost thousands of people in the continuing violence, including two generals, two admirals, three government ministers and, in AprilPresident Premadasa himself.

Despite such a murderous civil war, Sri Lanka maintained its parliamentary democracy and, within reasonable restrictions, the fundamental rights of its citizens and an independent judiciary. In the May presidential elections, Chandrika Bandaranaike Kumaratunga was voted in as president. Her peace talks with the LTTE began in October and lasted days, but the talks failed and hostilities resumed. This time, the Sri Lanka Security Forces were able to recapture the Jaffna peninsula by Decemberending 13 years of LTTE rule there.

In response, the government launched its own campaign called "Jaya Sikurui" or "Victory Assured," its longest 20 months, from May 13,to December 4, and costliest offensive to date. On January 26,a bomb exploded outside one of Buddhism's holiest shrines — Daladwa Maligawa, in the hill capital of Kandy — just two days before the first scheduled local government elections in 15 years in the Jaffna peninsula, and only a few days before the fiftieth anniversary celebrations of Sri Lanka's independence that were planned for Kandy.

In the January elections in the northern areas, five Tamil parties participated, including four which had fought against the Sri Lankan army. The LTTE boycotted the elections. The PA and the UNP, the two principal parties in the country, did not participate because they wanted to leave the field to the Tamil parties.

Only 28 percent of registered voters cast their ballot. The Eelam People's Democratic Party EPDP won the largest number of seats. By mid, the LTTE had regained large parts of the Jaffna Peninsula and control over the jungles behind the lagoons in the eastern province. The government was frustrated at the failure of several policy initiatives to subjugate the LTTE, ranging from negotiations and military strikes to getting the United States to declare LTTE a terrorist organization.

In Julythe world was shocked by the news of the LTTE's attack on the Bandaranayake International Airport in Colombo and the Air Force Base at Katunayake, destroying 13 air force planes and three Sri Lanka Airlines airbuses. Several other aircraft were damaged. Bymore than 60, people had died in the year civil war; additionally, more than 2, soldiers were killed and another 1, turned up missing and presumed dead.

Although the LTTE lost control over some of its territory, the impunity with which it could strike at the very heart of the governmen's infrastructure — both civil and military — was shocking. The beginnings of the press in Sri Lanka were marked by the publication of the Government Gazette inwithin months of Britain's formal acquisition of the island at the Peace of Amiens. The gazette could not be considered a genuine newspaper as such, since it was the government's tool to announce official postings, leaves, and retirements as well as to record government's administrative decisions.

The first newspaper, the Colombo Journal appeared in but lasted only two years. It was almost exclusively meant for the relatively small, cloistered British community of officials and a growing number of businessmen and plantation owners. It was followed by the Observer and Commer cial Advertiser and the Ceylon Times which later became famous as the Times of Ceylon. The "language" press began in with the publication of Lankaloka in Galle; the first Sinhala weekly newspaper, Lakminapahana, appeared on September 11, Inthe second Sinhala daily, Lakrivikrama which had been a weekly sincebegan publication.

By the time the legendary H. Perera began publishing his well-known daily, Dinamana inthe other two dailies had stopped publication, which made Dinamana the only Sinhala daily until September At that time, Alexander Welivita started the Sinhala daily, Lakmina, which survived till Dinamana it-self was later acquired by the Associated Newspapers of Ceylon Limited ANCL.

Inthe ANCL began publishing a Tamil daily, Thinakaran. At the time of Sri Lanka's independence from Great Britain inthe island nation's press was practically a duopoly.

The ANCL, popularly called the "Lake House" after the name of the colonial mansion that served as its headquarters, was started in by a venerable figure in Sri Lanka's history of the press, D. He founded the chain with its principal newspaper, the Ceylon Daily News, and five years later, inhe acquired the Observer and Commercial Advertiser. The Lake House also published the Daily News, Dinamana daily in Sinhala and Janata another daily in Sinhala.

The second component of the "duopoly" was the Times group, whose flagship was, indeed, the Times of Ceylon. It also published the daily Morning News and Lankadipa daily in Sinhala.