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Geography, agriculture and economy of Sri Lanka Sri Lanka is an island state in the Indian Ocean, off the south-east tip of India. It extends over a surface of about 65,600 km2. The estimated population of about 20 million is growing at a rate of less than 0.1 per cent annually. More than 80 per cent of the population is rural. The country has a tropical climate, with seasonal monsoons. The island comprises mainly low or rolling plains and a mountainous zone in the south-central interior. In late December 2004 a tsunami devastated vast areas along the island’s coasts. Agriculture Over the period 1990–2000, the agriculture sector, including forestry and fisheries, grew at an average rate of 2.5 per cent, although the relative significance of agriculture in the country’s economy is declining. Agriculture accounted for 19 per cent of gross domestic product (GDP) in 2003 (World Bank), and employs more than one third of the labour force. The plantation sector produces the three main export crops: tea, rubber and coconut. Sri Lanka also exports spices and fish. Farmers produce paddy and other field crops. At the end of 2004 a disastrous tsunami disrupted agriculture in coastal areas. It swept over paddy-growing zones, wiping out one third of production in the main cropping season. Everywhere it struck, it destroyed water storage and irrigation facilities and infrastructure. More than 80 per cent of all fishing vessels were lost or damaged, putting livelihoods of poor communities in coastal fishing villages at risk. Economy Sri Lanka has been a leader among developing countries in terms of sustained growth, per capita incomes, and achievements in health and education. It has also made significant strides towards rural-urban and gender equity. Until a peace process was launched in 2001 to end civil conflict between the Tamil separatist movement and the government, strife cast a shadow on the economy. In 2003 GDP totaled US$18.2 billion and was growing at an annual rate of almost 6 per cent. Gross national income per capita was US$930. About 800,000 Sri Lankans work abroad, 90 per cent of them in the Middle East. Their remittances amount to about US$ 1.0 million a year. The tsunami that struck the Indian Ocean area in 2004 dealt a crushing blow to the country’s heavily tourism-dependent economy. In coastal areas in its path, infrastructure was partially or totally destroyed as far as 2 km inland. |
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