Sri Lanka

Sri Lanka is an island nation in South Asia, surrounded by the Indian Ocean, Bay of Bengal, and the Gulf of Mannar. It is divided into nine provinces and 25 districts, with Sri Jayewardenepura-Kotte as the capital city and Colombo being the largest city. The official languages of Sri Lanka are Sinhala and Tamil, and the currency is the Sri Lankan rupee (LKR).

The island was named Sri Lanka in 1972 after it attained republic status. Sri Lanka is an indigenous name meaning the 'resplendent island'. Sri Lanka has been known from ancient times to several civilisations of the world by a variety of names. The etymology of Sri Lanka stretches back to historical times. The Greeks called her 'Taprobane', the Arabs named her 'Serendib', and the old colonial powers of Portugal, Dutch, and Britain called her 'Ceilão', 'Zeylan', and 'Ceylon' respectively.

Early Sri Lanka was primarily agricultural. As settlements shifted to the dry zone of the country, an elaborate system of irrigation by means of artificial lakes and canals was constructed by the kings of the day. By then, Buddhism had been introduced to the island. Religion and culture flourished under the patronage of the ancient kings of Sri Lanka. Settlements gradually moved southwards across the island mainly due to the threat of invasions from Southern India. Trade began to assume importance in the economy. Early trade centred on spices and precious stones, and soon attracted Arab, Persian, and Chinese merchants.

The first Europeans to arrive were the Portuguese, who took control of the western coastal plains in the 16th century. They also introduced Christianity to the island. The Portuguese were ousted by the Dutch, who introduced the Roman Dutch legal principles that continue to apply in the island to this day. The British finally took control of the Maritime Provinces from the Dutch in 1796. The British assumed control of the whole island when the last remaining local kingdom in Kandy was annexed in 1815.

Coffee was introduced as a plantation crop, and this was later replaced by tea in the hilly regions. Rubber was planted in lower elevations. Railways and roads were built, and an economic and social infrastructure came into being. The economy developed around plantations.

The foundation of a strong democracy was laid in the 1930s. Sri Lanka achieved independence from the British in 1948. From the status of a dominion, she became a republic in 1972, opting to stay within the Commonwealth.

During the post-independence period, Sri Lanka has developed into a welfare state whose standards of education literacy stand at 92.5%. Health wise, life expectancy for Sri Lankan woman is estimated to be 77.28 years, while 73.08 years for males. Furthermore, nutrition is among the best in the developing world. The United Nations Development Programme (UNDP) and United Nations International Children's Emergency Fund (UNICEF) rate Sri Lanka as one of the best among developing countries on the Human Development Index (HDI).

Agriculture is a significant economic activity in Sri Lanka. A substantial part of employment and export earnings originate from agriculture. The main crops are paddy, tea rubber, and coconut.

In the last decade, the government in Sri Lanka has pursued policies of industrialisation as a means of achieving growth, creating employment, and diversifying an economy that was based on crop exports.

The Board of Investment of Sri Lanka (BOI) is the statutory body charged with the responsibility of promoting and approving foreign and domestic investment in the country. It plays a key role in the implementation of Sri Lanka’s export-oriented industrialisation strategy. Textile and garments have become important industrial products after the development of export processing zones.

Tourism also plays an increasingly significant role in the economy.

PwC Sri Lanka operates from its principal office in Colombo, the commercial capital of Sri Lanka, and also overlooks the operations in Malé, the capital of the Republic of Maldives. With over 380 employees and 14 partners and directors, we act as advisers to various sector enterprises and the government on Assurance, Finance Tax Advisory, and Technology Advisory matters.