Editing Economy of Sri Lanka (section)

== Economic sectors ==

=== Tourism ===
[[File:Unawatuna.jpg|thumb|right|225px|[[Unawatuna]] Beach]]
{{main|Tourism in Sri Lanka}}
[[Tourism]] is one of the main industries in [[Sri Lanka]]. Major tourist attractions are focused around the island's famous beaches located in the [[Southern Province, Sri Lanka|southern]] and the [[Eastern Province, Sri Lanka|eastern]] parts of the country and ancient heritage sites located in the interior of the country and resorts located in the mountainous regions of the country.<ref>[http://www.iht.com/articles/2005/07/06/bloomberg/sxlanka.php Sri Lanka tourism revives slowly], ''International Herald Tribune''</ref><ref>{{cite news|url=http://news.bbc.co.uk/sport2/hi/cricket/sri_v_eng_2003/travel_guide/default.stm|title=Sri Lanka tour guide|publisher=BBC Sport |access-date=3 June 2008 | date=21 November 2003}}</ref> Also, due to [[precious stone]]s such as [[rubies]] and [[sapphire]]s being frequently found and mined in [[Ratnapura]] and its surrounding areas, they are a major tourist attraction.<ref name="gem1">{{cite news|url =http://science.nationalgeographic.com/science/enlarge/gem-mining.html|archive-url =https://web.archive.org/web/20071213023053/http://science.nationalgeographic.com/science/enlarge/gem-mining.html|url-status =dead|archive-date =13 December 2007| title =Gem Mining|publisher = National Geographic Society|date = 16 January 2008}}</ref>

The [[2004 Indian Ocean earthquake|2004 Indian Ocean Tsunami]]<ref>{{cite news|url=http://edition.cnn.com/2005/TRAVEL/01/06/tsunami.travel/|title=Tsunami region seeks tourism boost|publisher=CNN|date=6 January 2005}}</ref> and the past [[Sri Lankan civil war|civil war]] have reduced the tourist arrivals, as a civil war intensified.<ref>{{cite news|url=https://fr.reuters.com/article/idINIndia-30614920071121|title=Sri Lanka tourism earnings hit by war worries - official|newspaper=[[Reuters]]|access-date=10 December 2020}} {{dead link|date=July 2021|bot=medic}}{{cbignore|bot=medic}}</ref> Foreign visitors fell from 566,202 in 2004 during a ceasefire with Tamil Tiger separatists to 447,890 by the end of the war in 2009. From then arrivals grew rapidly to 2,333,796 in 2019. [[2019 Sri Lanka Easter bombings|The 2019 Easter Sunday bombings]] reduced arrivals to 1,913,702 though authorities acted quickly to round up the group and travel advisories were relaxed by key generating markets such as the UK as early as June 2019.<ref>{{cite web|url=https://www.sltda.gov.lk/storage/common_media/Tourism%20Growth%20Trends%201971%20_%202019736772868.pdf|title=Tourism Growth Trends 1971 to 2019|publisher=[[Sri Lanka Tourism Development Authority]]|website=sltda.gov.lk|access-date=9 December 2020|archive-date=22 September 2020|archive-url=https://web.archive.org/web/20200922112357/https://sltda.gov.lk/storage/common_media/Tourism%20Growth%20Trends%201971%20_%202019736772868.pdf|url-status=dead}}</ref><ref>{{cite news|url=https://economynext.com/uk-relaxes-travel-advisory-to-sri-lanka-14327/|title= UK relaxes travel advisory to Sri Lanka |newspaper=[[EconomyNext]]|access-date=10 December 2020}}</ref> [[Lonely Planet]] named Sri Lanka the best destination to visit in 2019 and [[Travel+Leisure]] the best island.<ref name="LonelySL" /><ref name="T+LeiSL" />

The COVID-19 pandemic dealt a major blow to the industry after airports were closed in March 2020. Tourism revenues were estimated to have fallen to US$956mn in 2020 from US$3.6bn in 2019 hurting over 300,000 said to be connected to the industry.<ref>{{cite web |title=Earnings from Tourism (2009 January to Latest) |url=https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/statistics/sheets/table2.14.1_20201231_e.xlsx |website=cbsl.gov.lk |publisher=Central Bank of Sri Lanka |access-date=6 March 2021}}</ref> The government has announced a number relief measures including a debt moratorium, which were then extended.<ref>{{cite web |url=https://srilanka.travel/covid19/|title= Updated on Covid-19 |publisher=[[Sri Lanka Tourism Development Authority]] |website=sltda.gov.lk |access-date=9 December 2020}}</ref><ref>{{cite news|url=https://www.dailynews.lk/2020/11/03/local/232835/relief-package-tourism-sector-continue |title= Relief package for the tourism sector to continue|newspaper=[[Daily News (Sri Lanka)]] |access-date=10 December 2020}}</ref> In 2020 arrivals fell 70 percent to 507,704 from 1,913,702 in 2019, with almost all arrivals coming before airports closed in March.<ref>{{cite web |title=Sri Lanka Tourism Arrivals Report December |url=https://www.sltda.gov.lk/storage/common_media/Arrivals%20Report%20December%20%20-%2020203418234776.pdf |website=www.sltda.gov.lk |publisher=Sri Lanka Tourism Development Authority |access-date=6 March 2021}}</ref> In December 2020, under what was called a 'pilot project' 393 package tourists came to Sri Lanka on a charter flights from Ukraine. On January 21 tourism resumed officially allowing independent travellers to also come subject to a series of health rules and Coronavirus tests.<ref>{{cite news |title=Sri Lanka expects tourists from Germany, Dubai as airports re-open |url=https://economynext.com/sri-lanka-expects-tourists-from-germany-dubai-as-airports-re-open-78081/ |access-date=6 March 2021 |publisher=[[EconomyNext]] |date=21 January 2021}}</ref>

=== Tea industry ===
[[File:Ceylon Tea logo.png|thumb|Ceylon Tea logo]]
[[File:Sri Lanka-Tea plantation-02.jpg|right|225px|thumb|Tea estate in the central highlands]]
{{main|Tea industry of Sri Lanka}}

The tea industry, operating under the Ministry of Public Estate Management and Development, is one of the main industries in Sri Lanka. It became the world's leading exporter in 1995 with a 23% share of global tea export, higher than [[Kenya]]'s 22% share. The central highlands of the country have a low-temperature climate throughout the year and annual rainfall and humidity levels that are suitable for growing tea. The industry was introduced to the country in 1867 by [[James Taylor (Ceylon)|James Taylor]], a British planter who arrived in 1852.<ref>{{cite web|url=http://www.american.edu/ted/ceylon-tea.htm|title=TED Case Studies – Ceylon Tea|publisher=American University |location=Washington, D.C.}}</ref>

Recently, Sri Lanka has become one of the countries exporting fair trade tea to the UK and other countries. It is believed that such projects could reduce [[rural poverty]].<ref>{{cite web|url=http://www.steenbergs.co.uk/content.php?pageid=23|title=Steenbergs Organic Fairtrade Pepper and Spice|publisher=steenbergs.co.uk|access-date=23 March 2018|url-status=dead|archive-url=https://web.archive.org/web/20080209162003/http://www.steenbergs.co.uk/content.php?pageid=23|archive-date=9 February 2008|df=dmy-all}}</ref><ref>{{cite web |url=http://www.fairtrade.org.uk/fc-sum98.htm |title=Fairtrade &#124; Publications &#124; Fair Comment &#124; Summer 1998 |access-date=31 May 2005 |url-status=dead |archive-url=https://web.archive.org/web/20050428145632/http://www.fairtrade.org.uk/fc-sum98.htm |archive-date=28 April 2005 |df=dmy-all }}</ref>

=== Apparel and textile industry ===
{{main|Apparel industry of Sri Lanka}}
The apparel industry of Sri Lanka mainly exports to the [[United States]] and [[Europe]].<ref>{{Cite journal|last=Ekanayake|first=Nishani|date=2016|title=Determinants of External Demand for Textiles and Garments of Sri Lanka|journal=Staff Studies|volume=43|issue=1–2|pages=85–104|doi=10.4038/ss.v43i1-2.4691|doi-access=free}}</ref> There are about 900 factories throughout country serving companies such as [[Victoria's Secret]], [[Liz Claiborne]] and [[Tommy Hilfiger]].<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/1916847.stm|title=Sri Lanka seeks US free trade|work=BBC News|date=8 April 2002 | access-date=3 January 2010}}</ref> Textiles & Apparels, as categorized and reported by the Sri Lanka Export Development Board, made up to around 44% of Sri Lankan merchandise exports, in the year 2017.<ref>{{Cite web|url=https://www.i-advertise.net/blog/what-products-is-sri-lanka-famous-for/|title=What products is Sri Lanka famous for?|date=18 December 2018|website=i-Advertise.net|language=en-GB|access-date=2018-12-26|archive-url=https://web.archive.org/web/20181226133649/https://www.i-advertise.net/blog/what-products-is-sri-lanka-famous-for/|archive-date=26 December 2018|url-status=dead}}</ref>

=== Agriculture ===
{{Main|Agriculture in Sri Lanka|Livestock in Sri Lanka}}
The [[agricultural sector]] of the country produces mainly rice, coconut and grain, largely for domestic consumption and occasionally for export. The tea industry which has existed since 1867 is not usually regarded as part of the agricultural sector, which is mainly focused on export rather than domestic use in the country.<ref>{{cite web|url=http://www.country-studies.com/sri-lanka/agriculture.html|title=Sri Lanka – Agriculture|publisher=CountryStudies.com}}</ref>

Sri Lanka's agricultural and agri-allied manufacturing is likely affected by climate variations. There was a flood in May 2018 followed by floods in May 2016 and May 2017.

==== Transition to biological agriculture ====

In June 2021, Sri Lanka started the first 100% organic farming or biological agriculture program and imposed a countrywide ban on inorganic fertilizers and pesticides. The program was welcomed by its advisor [[Vandana Shiva]],<ref>{{Cite web|date=2021-06-16|title=Sri Lanka's shift towards organic farming|url=https://navdanyainternational.org/sri-lankas-shift-towards-organic-farming/|access-date=2021-09-05|website=Navdanya international|language=en-US}}</ref> but ignored critical voices from scientific and farming community who warned about possible collapse of farming,<ref name=":7">{{Cite web |last=Wijesekara |first=Asanka |date=25 May 2021 |title=Opinion {{!}} The ban on chemical fertilizer and the way forward of Sri Lankan Tea Industry |url=https://agrigateglobal.com/reads/opinion/opinion-the-ban-on-chemical-fertilizer-and-the-way-forward-of-sri-lankan-tea-industry/ |access-date=2021-09-05 |website=Agrigate Global |language=en-US |quote=By diverting the attention of policymakers towards pointless nonscientific arguments instead of promoting such integrated management systems and high technological fertilizer production, will be only a time-wasting effort and meanwhile, the global demand for Ceylon Tea will generate diminishing returns. At present, there are about 500,000 direct beneficiaries from the tea industry and about 600 factories are operating around the country. In general, the livelihood of around 3 million people is directly and indirectly woven around the domestic tea industry.  The researchers and the experienced growers have predicted that a 50 per cent reduction in the yield has to be anticipated with the ban on chemical fertilizer. The negative implication of this yield reduction is such that there is a risk of collapsing the banking sector which is centralized around the tea industry in the major tea growing areas including Ratnapura, Galle, Matara, Kaluthara, and Kegalle.}}</ref><ref>{{Cite web |last=Wickramatunga |first=Wicky |date=11 May 2021 |title=Opinion {{!}} Inorganic Fertilizer and Agrochemicals Ban in Sri Lanka and Fallacies of Organic Agriculture |url=https://agrigateglobal.com/reads/opinion/inorganic-fertilizer-and-agrochemicals-ban-in-sri-lanka-and-fallacies-of-organic-agriculture/ |access-date=2021-09-05 |website=Agrigate Global |language=en-US}}</ref><ref>{{Cite web|date=2021-06-08|title=Sri Lanka Going Organic: Rethink the strategy; Agriculturists Write to President {{!}} The Sri Lankan Scientist|url=https://scientist.lk/2021/06/08/sri-lanka-going-organic-rethink-the-strategy-agriculturists-write-to-president/|access-date=2021-09-05|language=en-US}}</ref><ref>{{Cite web |last=Jayasundara |first=Hiran B. |date=2021-06-30 |title=Organic Farming In Sri Lanka – Ideology Of Hitler & Sri Lankan Agri "Cults" |url=https://www.colombotelegraph.com/index.php/organic-farming-in-sri-lanka-ideology-of-hitler-sri-lankan-agri-cults/ |access-date=2021-09-05 |website=Colombo Telegraph |language=en-US}}</ref><ref>{{Cite web |last=Durham |first=Tim |date=2021-06-25 |title=Sri Lanka's organic push threatens to backpedal ag progress |url=https://www.agdaily.com/insights/perspective-sri-lankas-organic-push-threatens-to-backpedal-ag/ |access-date=2021-09-05 |website=Agdaily |language=en-US}}</ref> including financial crisis due to devaluation of national currency pivoted around tea industry.<ref name=":7" /> In the autumn of 2021 Sri Lanka experienced a massive drop in farming output by up to 50% and food shortages. The situation in the tea industry was described as critical, with farming under the organic program being described as 10x more expensive and producing half of the yield by the farmers.<ref>{{Cite web|title=Organic food revolution in Sri Lanka threatens its tea industry|url=https://www.aljazeera.com/news/2021/9/1/organic-food-revolution-sri-lanka-tea-industry|access-date=2021-09-05|website=www.aljazeera.com|language=en}}</ref> In September 2021 the government announced "economic emergency", as the situation was further aggravated by falling national currency exchange rate, inflation rising as result of high food prices, and pandemic restrictions in tourism which further decreased country's income.<ref>{{Cite news|date=2021-09-01|title=Covid: Sri Lanka in economic emergency as food prices soar|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-58390292|access-date=2021-09-05}}</ref><ref name="ThePrint 2021">{{cite web | first=Samyak | last=Pandey | title=How Sri Lanka's overnight flip to total organic farming has led to an economic disaster | website=ThePrint | date=5 September 2021 | url=https://theprint.in/world/how-sri-lankas-overnight-flip-to-total-organic-farming-has-led-to-an-economic-disaster/728414/ | access-date=6 September 2021}}</ref><ref name="Perumal 2021">{{cite web | last=Perumal | first=Prashanth | title=Explained - What caused the Sri Lankan economic crisis? | website=The Hindu | date=6 September 2021 | url=https://www.thehindu.com/business/explained-what-caused-the-sri-lankan-economic-crisis/article36314148.ece | access-date=6 September 2021}}</ref><ref name="Jayasinghe 2021">{{cite web | last=Jayasinghe | first=Amal | title=Sri Lanka organic revolution threatens tea disaster | website=Phys.org | date=1 September 2021 | url=https://phys.org/news/2021-09-sri-lanka-revolution-threatens-tea.html | access-date=6 September 2021}}</ref> The government cancelled some of these measures, but importing [[urea]] remains banned.<ref name="France 24 2021">{{cite web | title=Sri Lanka walks back fertiliser ban over political fallout fears | website=France 24 | date=5 August 2021 | url=https://www.france24.com/en/live-news/20210805-sri-lanka-walks-back-fertiliser-ban-over-political-fallout-fears | access-date=6 September 2021}}</ref> Sri Lanka is seeking to introduce [[Rationing#Peacetime rationing|peacetime rationing]] of essential goods.<ref name="Perumal 2021" />

In mid-October 2021 the ban was largely lifted "until the island was able to produce enough organic fertiliser".<ref>{{Cite web|date=2021-10-19|title=Sri Lanka reverses organic farming drive as tea suffers|url=https://www.france24.com/en/live-news/20211019-sri-lanka-reverses-organic-farming-drive-as-tea-suffers|access-date=2021-10-19|website=France 24|language=en}}</ref> In November 2021, Sri Lanka abandoned its plan to become the world's first organic farming nation following rising food prices and weeks of protests against the plan.<ref>{{Cite news|last=Watt|first=Louise|date=2021-11-21|title=Sri Lanka abandons drive to become world's first organic country amid spiralling food prices|language=en-GB|work=[[The Daily Telegraph]]|url=https://www.telegraph.co.uk/world-news/2021/11/21/sri-lanka-abandons-drive-become-worlds-first-organic-country/|access-date=2022-01-18|issn=0307-1235}}</ref> As of December 2021, the damage to the agricultural production was already done, with prices having risen substantially for vegetables in Sri Lanka, and time needed to recover from the crisis. The ban on fertilizer has been lifted for certain crops, but the price of [[urea]] has risen internationally due to the price for oil and gas.<ref name="The New York Times 2021sri2">{{cite web|last1=Wipulasena|first1=Aanya|last2=Mashal|first2=Mujib|date=7 December 2021|title=Sri Lanka's Plunge Into Organic Farming Brings Disaster|url=https://www.nytimes.com/2021/12/07/world/asia/sri-lanka-organic-farming-fertilizer.html|access-date=19 January 2022|website=The New York Times}}</ref> Jeevika Weerahewa, a senior lecturer at the [[University of Peradeniya]], predicted that the ban would reduce the [[Paddy field|paddy]] harvest in 2022 by an unprecedented 50%.<ref>{{Cite news|last1=Wallen|first1=Joe|last2=Hewage|first2=Nishantha|date=2022-01-31|title=Sri Lankan families go hungry as cost of food skyrockets|language=en-GB|work=The Daily Telegraph|url=https://www.telegraph.co.uk/global-health/climate-and-people/sri-lankan-families-go-hungry-cost-food-skyrockets/|url-status=live|access-date=2022-02-01|archive-url=https://web.archive.org/web/20220201045654/https://www.telegraph.co.uk/global-health/climate-and-people/sri-lankan-families-go-hungry-cost-food-skyrockets/|archive-date=1 February 2022|issn=0307-1235}}</ref>

=== IT industry ===
{{Main|Information Technology in Sri Lanka}}

The export revenue from the Sri Lankan IT sector was US$1,089 million in 2019.<ref name=PDF>{{cite web|title=SRI LANKA'S EXPORT PERFORMANCE 2019|url=https://www.srilankabusiness.com/ebooks/export-performance-2019.pdf}}</ref>

=== Mining ===
{{Main|Gems of Sri Lanka}}
Sri Lanka is known for producing a variety of gemstones, including [[chrysoberyl]], [[corundum]], [[garnet]], [[ruby]], [[spinel]], and [[tourmaline]], and is the leading producer of the [[Sapphire|Ceylon Blue sapphire]]. Ceylon sapphires are among the most desirable in the gemstone market and can regularly fetch thousands per carat. Contrary to popular belief Ceylon produces sapphires of all colours,<ref>{{Cite web |title=Sapphires and its Variety of Colours {{!}} Ceylons Munich |url=https://www.ceylons.de/sapphires-in-all-colours-of-a-rainbow |access-date=2024-01-01 |website=www.ceylons.de |language=en}}</ref> including padparascha types, though blue is the most desirable and yields the highest prices. Some of the world's largest sapphires, such as the [[Logan Sapphire]] and Blue Belle of Asia, have come from Sri Lanka.

The best-known areas for gemstone mining in Sri Lanka were Balangoda, Elahera, Kamburupitiya, Moneragala, Okkampitiya, and Ratnapura. In addition, Sri Lanka has a variety of industrial minerals, which include [[ball clay]], [[Kaolinite|kaolin]], and other [[clay]]s, [[calcite]], [[Dolomite (mineral)|dolomite]], [[feldspar]], [[graphite]], [[limestone]], [[Ilmenite]], [[mica]], [[rutile]] [[Heavy mineral sands ore deposits|mineral sands]], [[Phosphorite|phosphate rock]], [[quartz]], [[zircon]], [[Dolomite (mineral)|dolomite]] and silica sand. Pulmoddai beach sand deposit is the most important non-ferrous mineral reserve in Sri Lanka as well as one of the world's most richest mineral sand deposits with heavy mineral concentrates of 50% to 60% and contains many minerals including [[titanium]].<ref name="2014 Minerals Yearbook- Sri Lanka">{{Cite web|url=https://minerals.usgs.gov/minerals/pubs/country/2014/myb3-2014-ce.pdf|title=2014 Minerals Yearbook- Sri Lanka |publisher=United States Geological Survey Mineral Resources Program}}</ref><ref>{{Cite web|url=https://minerals.usgs.gov/minerals/pubs/country/2011/myb3-2011-ce.pdf|title=2011 Minerals Yearbook- Sri Lanka|publisher=USGS }}</ref><ref>{{Cite news |url=http://www.srilankabusiness.com/ceramic-and-porcelain/industrial-minerals-in-sri-lanka.html|title=Industrial Mineral Resources in Sri Lanka{{!}}Manufacturing of Industrial Minerals|publisher=Sri Lanka Business |access-date=6 May 2018}}</ref>

Sri Lanka is famous, especially for its highly valued and high-purity vein graphite. As of 2014, graphite was produced at the two largest graphite mines in Sri Lanka, the Bogala and the Kahatagaha Mines. Major investors in graphite mining are Graphite Lanka Ltd., Bogala Graphite Lanka Plc, Bora Bora Resources Ltd. (BBR) of Australia, MRL Corp. Ltd. of Australia, and Saint Jean Carbon Inc. of Canada.<ref>{{Cite web|url=https://minerals.usgs.gov/minerals/pubs/country/2013/myb3-2013-ce.pdf|title=2013 Minerals Yearbook- Sri Lanka|publisher=USGS }}</ref><ref name="2014 Minerals Yearbook- Sri Lanka" />