Economic Analysis

Economic Analysis

Prepared for DR. AMIR ULLAH International Marketing

Prepared by Saurabh Bhide C. Pratap Narsaraju

Contents I.

Executive summary:........................................................................................2

II.

Population.....................................................................................................3 A.Total............................................................................................................3 1.

Growth rates:.......................................................................................3

2.

Number of live births.............................................................................4

3.

Birthrates............................................................................................4

B.

Distribution of population............................................................................5 1.

Age.....................................................................................................5

2.

Sex.....................................................................................................5

3.

Migration rates and patterns...................................................................5

4.

Ethnic groups.......................................................................................6

III.

Economic statistics and activity........................................................................6

A.

Gross national product (GNP or GDP)............................................................7 1.

Total...................................................................................................7

2.

Rate of growth (real GNP or GDP)...........................................................7

B.

Personal income per capita...........................................................................8

C.

Average family income...............................................................................8

D.

Distribution of wealth.................................................................................9

E.

Minerals and resources................................................................................9

F. Surface transportation..................................................................................10 1. G.

Modes...............................................................................................11 Communication systems............................................................................11

I. Principal industries........................................................................................12 J.

Foreign investment writing guide....................................................................13

K.

Trade statistics........................................................................................14

L.

Trade restrictions.....................................................................................15

M. Labor force................................................................................................21 IV. V. VI.

Developments in science and technology..........................................................22 Channels of distribution..................................................................................23 Media......................................................................................................25

References:....................................................................................................25

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Economic Analysis I.

Executive summary:

Sri Lanka has been plagued by clash with LTTE as well as civil wars for many years. In spite of this Sri Lanka has managed to maintain egalitarianism and protract a comparatively unwavering echelon of economic development with its weapons like strapping market economy, noninterventionist free trade and investment system. But like any other country corruption remains a prime cause of worry for Sri Lanka and is estimated to cost Sri Lanka 2% of its annual economy(School, 2009). Today Sri Lanka boosts of higher per capita income in South Asia as compared to even India. It also has a literacy rate of 92% and has ample aid from World Bank and private organizations to swell its entrepreneurship bustle. Sri Lanka is tipped to have an average of 5.8% increase in GDP till 2012 with free trade markets and ease in global commodity market(School, 2009). Opening a business in Sri Lanka is no more a nightmare if taxing and licensing handled effectively. With this overview the economic analysis is done taking into consideration the product are taking to Sri Lanka. The report covers the Sri Lanka’s demographic and economic analysis. Efforts are been made to understand the various trade laws and restrictions prevailing in Sri Lanka to get a deeper view of doing business in Sri Lanka. The report gives us a clear idea of the opportunities and threats that we may come across while starting our business in Sri Lanka and help us justify our decision of exporting Indian handicrafts to Sri Lanka.

II.

Population

A.Total According to the latest reports the population of Sri Lanka is estimated to be 21, 324, 729 (Factbook, 2009). The fluctuating population on Sri Lanka can be accounted to the fact that since 1980s, several hundred thousand Tamil habitants have fled the island due to the warfare between the governments and armed Tamil separationists. According to the July 2009 figures an estimate of 200,000 Tamilian fled the islands because of the hostile situation prevailing in the island country of Sri Lanka(Factbook, 2009). Population wise Sri Lanka ranks 54’Th in the world (Factbook, 2009). 1. Growth rates: The average annual change in population is dependent on factors like birth rate, death rate, and number of migrants entering or leaving the country. This growth rate can be positive or negative. The growth rate is the determining factor to analyze the onus of the country population on needs like infrastructure, jobs, resources etc. The growth rate of Sri Lanka was estimated to be 0.904% (Factbook, 2009). The growth rate has thus shown a gradual increase in comparison with the 2008 growth rate figures which stands at 0.78%. In terms of population growth rate Sri Lanka ranks 134’Th in the world (Factbook, 2009). (Refer appendix 1) 2. Number of live births

Out of the total population of Sri Lanka the average life expectancy is 73.41 years. In terms of life expectancy age females have an upper hand as compared to males with female life expectancy standing at 76.12 years as compared to males which is 70.83 years (Factbook, 2009). The mortality rate in Sri Lanka is 13.97 deaths per 1000 births (Factbook, 2009).

3. Birthrates Birth rate gives the annual number of births happening per 1000 persons. The birth rate is overriding aspect for the calculation of the rate of population growth and is dependent on the level of fertility and the prevailing age structure of the population. The birthrate in Sri Lanka is estimated to be 1.84 children born per women. In other words there are 16.26 births/1000 populations according to the July-2009 estimation. In country comparison taking into consideration the birth rate, Sri Lanka ranks 130’th in the world. (Refer appendix 2)

B. Distribution of population

1. Age The distribution of population in Sri Lanka is like a mixed bag. Of the total population of Sri Lanka 23.9% of the population comparises of people aged between 0-14 years, 68% of people aged between 15-64 years and 8.1% people aged between 65 years and more. Thus it is evident that the population distirbution is more on the younger side in comparision with the western countries (Factbook, 2009). (refer appendix 4) 2. Sex Out of the 23.9% population aged between 0-14 years, male population puts up 2,594,815 as compared to 2,493,002 females with a male: female sex ratio of 1: 0.96. In the range of people aged between 15-64 years about of the 68% population there are about 7,089,307 males and 7,418,123 females. Thus there is a high concentration of females in the age range of 15-65 years. 3. Migration rates and patterns The migration rate of Sri Lanka is 1.09 migrants per 1000 population (Factbook, 2009). This shows that the migration rate is very low in Sri Lanka as compared to the other South Asian countries. 4. Ethnic groups The ethnic groups found in Sri Lanka are Sinhalese, Sri Lanka moors, Indian Tamils, Sri Lanka Tamil and others.

The distribution the ethnic group is: Sinhalese: 73.8% Sri Lanka moors : 7.2% Indian Tamil

: 4.6%

Sri Lanka Tamils : 3.9% Others: 0.5% (Factbook, 2009) (refer appendix 5)

III.

Economic statistics and activity

The republic of Sri Lanka saw a change its static economic policies in 1977 and it’s economic as well as import trade policies became more market and export centric with a huge boost for foreign investment. This move reaped huge benefits and the GDP of Sri Lanka saw an upper trend. December 2004, tsunami had an unpleasant effect on Sri Lankan economy with 31,000 deaths and an estimated loss of $1.5 billion worth of economy(Factbook, 2009). The government spending of the total economy has a bend to counter attack the 25 year old LTTE war. The dominant sectors of Sri Lanka economy are food processing, textiles and apparels, food and beverages etc.

A. Gross national product (GNP or GDP)

Gross domestic product (GDP) or the Gross national product (GNP) is the measure of the goods and services produced by the nation in a given fiscal year. The purchasing power parity (PPP) exchange rates based on the country’s GDP is the computation of the goods and services produced at prices compared to the United States. GDP is the measure of the per-capita welfare subsisting in the country likened to living conditions and the utilization of resources across the country. (refer Appendix 3) 1. Total The total GDP of Sri Lanka was estimated to be $91.87 billion in 2008. In terms of country comparison in the world Sri Lanka ranks an impressive 69’Th. The GDP of Sri Lanka in financial year 2007 was $86.67 billion and that in 2006 was $81.16(Factbook, 2009). This shows a steady but impressive increase in the GDP growth of Sri Lanka. 2. Rate of growth (real GNP or GDP) The rate of growth (real GNP or GDP) gives the GDP growth for the country annually attuned for inflation and expressed in the form of percentage. The estimated real GDP of Sri Lanka in the fiscal year 2008 was 6%. GDP wise Sri Lanka ranks 62’nd in the world (Factbook, 2009). In comparison, the GDP rate of Sri Lanka in 2007 was 6.8% and that in the year 2006 was estimated to be 7.7%.

Thus in comparison to inflation the GDP percent of Sri Lanka is showing a downward trend. In terms of doing business in Sri Lanka this is a positive sign, with changes in inflation in Sri Lanka.

B. Personal income per capita Per capita income is generally reliant on components like household size existent and the total household income. It is generally estimated by taking into consideration the income of all the prevalent households divided by the household population(Statistics, 2006-07). The per capita income in Sri Lanka was estimated to be $4300 which ranked 151’st in the world(Factbook, 2009). The most underlying fact here is that Sri Lanka ranks higher than India in terms of per capita income another good sign for starting a business in Sri Lanka(Recorder, 2008).

C. Average family income

The average family income in Sri Lanka is Rs. 25414. The average family income in urban areas of Sri Lanka is Rs. 42878 and that in the rural sector is Rs. 22979.

D. Distribution of wealth

The wealth distribution factor in Sri Lanka is highly distorted. The wealthy employing in industries are largely found in urban areas of Sri Lanka while the population relaying on agriculture for their living are concentrated mainly in the rural areas. The well-off account for 20 percent of the population, 52 percent account for middle income group while the poor account for 10 percent in terms of wealth distribution. The distribution disparities in wealth have risen with richer getting richer and poorer struggling for their way of living. Tsunami has had an unfair effect on the wealth distribution in some parts of Sri Lanka.

E. Minerals and resources The island country of Sri Lanka is induced with a rich haul of industrial mineral resources like apatite, calcite, clay, dolomite, feldspar, graphite, ilimenite, kaolin, mica, silica sand and zircon (Minerals, 2003). The credit for Sri Lanka’s rich haul of minerals can be given to the Geological and mines Bureau for keying out the country’s mineral assets thereby increase the export dimensions in Sri Lanka. The main exporters of Sri Lanka are Graphite and mineral sands (monazite). It is also instrumental in the export of geuda (pale white of colorless sapphire), loose gemstones and jewelry(Minerals, 2003). The gemstone industry is the most popular minerals based industry in Sri Lanka and gets a colossal boost from the government of Sri Lanka. The government intervention in the gemstone industry has resulted in production of sapphire (gemstone) to go up by 124% as estimated in 2003 and the industry employees near about manpower of 400000-500000 people(Stone, 2003). Sri Lanka has almost nil metal or mineral fuel wherewithal.

Of the total energy utilization in Sri Lanka, 70% account for firewood, agricultural residues and animal waste for household purposes. Sri Lanka lacks in coal and petroleum deposits and the only home-grown energy reserve in Sri Lanka is hydropower(Factbook, 2009). Sri Lanka boosts of ample hydropower energy resources which are instrumental in the industrial development in Sri Lanka. Geographically surrounded by water on all sides, many wind energy companies (both in-house and global) are starving to invest in Sri Lanka.

F. Surface transportation

Sri Lanka, the island at the junction of Asian trading routes has a well defined and well distinguished transportation system. Transportation in Sri Lanka is largely dependent on its road network. Sri Lanka also has an extensive railway network covering most of Sri Lanka. Apart from this Sri Lanka have many picturesque and modern ports for trade and transportation purposes.

1. Modes The main modes of transportation in Sri Lanka are roadways, railways, waterways and airways. Roads are the backbone of the transport sector in Sri Lanka, with the national highways accounting for 70% of the transport

in Sri Lanka (Group, 2009). Sri Lanka also boosts of several ports like Colombo, Galle, Trincomalee and Kankasanthural apart from an array of harbors. The capital city of Sri Lanka, Colombo is Sri Lanka’s prominent and well versed port and is tipped as one of the better performing ports in south Asia (Group, 2009). The port of Galle was also considered one of the prime ports for trade and transport in Sri Lanka before being devastated in tsunami. Sri Lanka has 18 operational airports used for transportation. The railway transportation in Sri Lanka has a touch of the colonial era and is still years away from modern facilities(Group, 2009). Overall Sri Lanka has railway network of 1449 k.m, roadways of 92787 k.m, waterways of 160 k.m. and 18 airports as a part of its transportation system.

G. Communication systems The main communication systems available in Sri Lanka are telephone (landline and mobile), Radio broadcast stations, Television broadcast stations and Internet. The Telephone system in Sri Lanka is well developed and improved significantly and is covers most part of Sri Lanka. The national network uses the digital microwave radio relay for transmission and there is a boot increase in mobile cellular industry of Sri Lanka. There are 2.742 million landline users and 7.983 mobile users in Sri Lanka (Factbook, 2009). Apart from this Sri Lanka has 12 Radio broadcast stations and 14 Television broadcast stations watched by an estimated 76% of the population in Sri Lanka. The landline and television

broadcast communication system is dim when it comes to rural areas of Sri Lanka. There were an estimated of 428000 internet users in Sri Lanka in year 2008 which is mammoth 200000 increase in users as compared to 2007. Apart from this there are about 4940 internet hosts in Sri Lanka. The usage rates of the communication system are affordable and the government is taking special efforts to encourage communication systems usage for trade and tourism. Thus Sri Lanka is well equipped with the minimal necessary communication systems and its availability country wide.

I. Principal industries In Sri Lanka manufacturing, mining, energy, transportation and construction industries were responsible for 51% of the country’s GNP in 2008(Savada, 2007). The prominent and money-spinning industries in Sri Lanka are tourism industry, textiles industry, agricultural industry, tea industry and gems industry. The manufacturing industry accounts for 21-26 % of the country’s GDP. Tourism is considered to one of the prominent industries in Sri Lanka. The southern and eastern regions of Sri Lanka are the areas that bring name, fame and ample foreign tourists to the country(Tribune, 2008). The tourism industry accounts for 8.6% of the country’s GDP. Tea industry is also one of the money spinning industry of Sri Lanka. Sri Lanka is the largest black tea exporter in the world and it shares almost 23% of the world tea production. Textile industry is a $1.8 billion industry for Sri Lanka. Its accounts for almost 5% of the country’s GDP. Apart from this agriculture sector is a well developed and prominent industry in Sri

Lanka and a culture since 2500 years. It accounts for 17.3% of the Sri Lanka GDP. Thus the GDP distribution of Sri Lanka can be broadly divided as •

Agriculture : 17.3%

•

Industry

: 27.3%

•

Services

: 55.3% (2006, 2008)

J. Foreign investment writing guide The foreign investment sector has started to move without restraint in the island country of Sri Lanka since the change in the economic policies of the country in 1977. The inflow of foreign investment has increased severely since 2006 with the Central bank Annual report predicting an increase in foreign investment by 110.3%. Foreign investment was instrumental in telecommunication sector, textiles, apparels and leather industry accounting for more than 60% (Samarajiva, 2007). There is also a stiff increase seen in the airline development within the country accounting for more foreign investment in terms of infrastructure management. The Board of Investment (BOI) of Sri Lanka approved an estimated 354 new foreign investment projects in the country committed to an investment of 3991.6 billion in 2007 (Samarajiva, 2007). According to the AFP reports Sri Lanka on a whole attracted a whopping $600 million foreign investment of which $350 was concentrated towards the telecom sector(Samarajiva, 2007). This shows that the island country of Sri Lanka is free and open to foreign trade, providing investment benefits and perks to the investors.

K. Trade statistics The trade dependency ratio i.e. the ratio of sum of exports revenue to imports revenue was 66 in the year 2007. The major exports of Sri Lanka are tea, rubber and coconuts which account for 74% of the total exports in the country. Industrial exports have started to be a major contributor to export earnings with a stiff rise from 14% - 76% in ten years. The industrial exports are powered by textiles and garments industry accounting for 68% of the total exports. Transitional products dictate the Sri Lanka imports story apart from investment goods and consumer goods. Intermediate goods account for 51% of the total imports, investment goods 27% and consumer goods 21%. The increase in the import of investment goods can be accounted to the exploitations in infrastructural facilities, construction and transport sector and the use of advanced and latest technology. Overall the export estimate of Sri Lanka was $7.899 billion in 2008 and the import estimate was $12.26 billion. The exchange rate in Sri Lanka was 108.23 per US dollar in 2008.

L. Trade restrictions ✔

PENETRATION OF RURAL AND URBAN MARKETS

For marketers Sri Lanka’s rural market offers a potential market, which is facing a stiff competition in urban markets. The rural market environment is totally different from the urban environment. Rural market offers a great potential market for the products and also for services because of two reasons

1.

Huge number of consumers

2.

In rural it is largely untapped market; in rural market they have very less

penetration for many products. Sri Lanka rural markets is unique because The wants of the rural consumers are not the same of the urban consumers, these wants are regarding to their lifestyle, environment and values. (Perera, 2009)

✔

IMPORTS POLICIES

Sri Lanka is open for foreign investment; they have a policy of tariff horizontal code, which deals with the import licensing. Sri Lanka requires import license for over 400 items and at 6-digit level of THC, mostly for their security reasons like health, environment. To receive import license importers must pay 0.1 percent of the import price. The government of Sri Lanka has followed the transaction value method to determine the CIF value and also in 2004 they have implemented WTO customs valuation agreement. The major imports are fuel, fabric and food. The amount of imports done was $14 billion in 2008(CIA, 2009)

✔

TRADE POLICIES FOR IMPORT

They have some trade policies in import, products which are restricted it import are •

Narcotic drugs

•

Arms and ammunition

•

Garments

They have a restriction in importing textiles because they are one of the major Exports in Textile.(, 2009)

✔

EXPORTS POLICIES

In export Sri Lanka is quite good; the total export of the country in terms of amount is $8.1billion, which had increased from last year 2007. (CIA, 2009).The major exports from the country are tea, textile, rubber fish and diamond. As per the report given by CIA the major export associates to Srilanka’s are India, Belgium, Italy and Germany. They are also following the GSP (generalized preference of systems) system while exporting their products.(, 2009)

✔

TRADE POLICIES TO EXPORT

When it comes to the trade polices Sri Lanka is very strict there are some restrictions in exporting their country products like •

Animals/parts of animals

•

Antiquities

•

Cultural properties

•

Dangerous drugs

•

Explosives

•

Fish-live ornamental

•

Minerals

•

Obscene publications

•

Some protected plants(, 2009)

✔

TARIFF

In Sri Lanka there are 5 tariff brands •

0 percent

•

2.5 percent

•

6 percent

•

16 percent

•

28 percent(, 2009)

When it comes to textile, pharmaceutical and medical equipments there is no tariff for these are duty free. In past several years Sri Lanka has been increased in its importing items, in addition to these tariff rates Sri Lanka has introduced new taxes like 60 percent to 100 percent of the cost, insurance and cargo (CIF) for the products. The government had started these charges on imports in order to increase he revenue.(, 2009)

✔

TRADE & FOREIGN ASSITANCE

Sri Lankan exports were estimated to $8.1 billion and imports from $14 billion for 2008. Country is trying to diversify its exports from Tea and Garments. Sri Lanka’s major export partners are EU and US. EU is the biggest garment export market for Sri Lanka and when it comes to US, Sri Lanka’s most important single market was estimated to $2 billion for 2008, it means 26% of the Sri Lanka’s exported market is US for garments.

India is the biggest supplier for Sri Lanka it is estimated around 20% of the imports is from India.(, 2009)

When it comes to assistance Sri Lanka is mostly depended on the foreign assistance. The providers are World Bank, Asian Development Bank, Japan and other disbursing loans totally of $1.5 billion in 2007.Iran has became the major lender of Sri Lanka for Oil imports and also Iran has promised for the modernization of Oil refinery in Sri Lanka. China has become the major lender of the infrastructure projects in Sri Lanka.

The Sri Lanka trade is good and the government is trying to improve the trading.

✔

PRINCIPLE INDUSTRIES INSRILANKA

The primary sector in Sri Lanka is Agriculture, secondary sector is manufacturing industry and territory sector is the service industry. Service industry plays the major role in the growth of countries economy. Primary industry—13.2 % Secondary industry— 27.5% Territory industry— 57.3% (World Bank Group, 2007)

✔

IMPORT AND EXPORT AGENTS

Most of the import and export restrictions were liberalized from 1977 and they have started their open economy policy. They have implemented a separate act for the import and export called ”Import and Export department” under a Act No. 01 of 1969 in order to control the import of goods into country and to restrict the export of goods from Sri Lanka.(, 2007)

Their main objective is to implement the government policies on import and export trade and to protect local products and national identity of export products. This department will also give the insurance of license under import and export requirements. When it comes to private import and export agents we have so many agents who are providing efficient logistic services in Sri Lanka.

✔

TRADE DEAL BETWEEN INDIA AND SRILANKA

After their war against LTTE Sri Lanka had gained its name in the world for defeating LTTE. Sri Lanka had a free trade agreement between the countries because of this the trade volume has grown from $600 million to $3.2 billion. Sri Lanka and India have planned to sign a new economic trade agreement of goods and services, said by IANS report and the minister of investment promotion said that they have also expanded the new comprehensive economic partnership agreement before 2011.(, 2009)

M. Labor force

The estimated labor force of Sri Lanka in the year 2008 was 7670000. Thus it evident that there is a stiff increase in the labor force of Sri Lanka as compared to year 2000 which stood at 6600000. In spite of the opportunities prevalent and the labor force available, Sri Lanka faces an unemployment rate of about 6.3% (est. 2008). But efforts are been taken to bring the unemployment rate down through various employment programs. O. Inflation rates The inflation rate is the count of the annual change in the consumer prices as compared to the previous year. The inflation rate in Sri Lanka was 15.6% in year 2008 as compared to 12.1% in year 2007 (Factbook, 2009). But as reports are to be believed the inflation rate is expected to come down in Sri Lanka and the Central bank is expected to cut down the interest rates to augment the country’s economic growth. The inflation rate is tipped to come down to 8.6% in 2009 according to the economists (Goyal, 2009).

IV.

Developments in science and technology The country’s prevailing national innovation system is more or less responsible for the nation’s profits from advances in science and technology. A country can provide high standards of living and better products and services if it has good communication systems, modern technology and technological advancements with the help of small as well as big enterprises. The number of scientists and researchers available in Sri Lanka stand at 190 per million populations as compared to India 157 per million populations. But still the innovation system in Sri Lanka is weak with only 2.74% increase in GDP (Srilanka, 2007). The

telecommunication system in Sri Lanka has a stronger base with over 7 million telephone users. The software industry of Sri Lanka suffers from lack of human resources. But with low labor cost and good communication skills it is able to attract ample number of Business Process Outsourcing (BPO). Biotechnology is a still under developed in Sri Lanka with its research mainly stagnated in traditional biotechnology like beer and cheese making(Srilanka, 2007). Thus the developments of science and technology in Sri Lanka are limited and efforts are being made with the help of small enterprises to increase the overall technological advancements in the country.

V.

Channels of distribution

In Srilanka’s we have around 66 retailers and the consumer product services. It has a services growth of 60 % GDP—the major types are tourism, whole & retail trade, telecom and financial services.(, 2009)

✔

SIZE OF THE RETAIL OUTLETS IN SRILANKA

The size of the retail stores vary from the size of the store like •

For departmental stores we have a size of around 40000 to 10000 sqft in area

•

For supermarkets we have around 4000 to 10000 sqft in area

•

For hypermarket we around 40000 to 200000 sqft in area

•

For exclusive we have around 4000 to 15000 sqft in area

•

For factory outlet we have around 4000 to 100000 sqft in area

•

The size of the retail store varies from country to country.(, 2009)

✔

ROLE OF RETAIL STORES

The role of the store varies from store to store like in departmental store we will find more product width than depth. In specialty stores we can find the particular product’s depth and width. But at last all these stores are to serve their customers. ✔

DISTRIBUTION & WHAREHOUSE IN SRILANKA

Sri Lanka has an expertise companies in warehousing storage in Sri Lanka (Cold storage, Liquid, Bulk and Tank Storage etc.). For receiving and loading shipments to/from Sri Lanka they have best rates for customs bonded warehousing. They are some specialized companies in Sri Lanka who organize our Shipments safely to warehouse and while moving the storage they maintain the efficient and timely manner.(, 2009)

When it comes to the distribution channel in Sri Lanka it quite efficient as in India because the road way is developing. They have the centralized warehousing for the companies. So, Sri Lanka can be the strategic location for us to allow our goods to procure easily. After understanding the efficiency of the warehouses and the retailers in Sri Lanka we had clear view of the distribution channel in the country.

VI.

Media The availability of media in Sri Lanka is based and concentrated along language and ethnic lines. The services provided in Sri Lanka revolve around Sinhala, Tamil and English Languages’. There are two major TV stations in Sri Lanka which are government

owned apart from radio networks operated by Sri Lanka Broadcasting Corporation. The newspapers are available in Sinhala, Tamil and English. There are also many private owned television networks as well as Radio networks in Sri Lanka apart from the regular ones. The Internet usage is also increasing drastically in Sri Lanka and is considered to affect other forms of media in a big way.

References: 2006, U. H. (2008, July). Gender and Trade. Retrieved September 18, 2009, from Commenwealth Secretariat: http://www.thecommonwealth.org Bureau Of South and Central Asian Affairs. (2009, july). Retrieved 09 16, 2009, from U.S Department Of State: http://www.state.gov Factbook, T. W. (2009, September 3). Central Intelligence Agency-Publications. Retrieved September 17, 2009, from Central Intelligence Agency: https://www.cia.gov Goyal, K. (2009, February 22). Srilanka Inflation Rate Drops. Retrieved September 20, 2009, from Bloomberg.com: http://www.bloomberg.com Group, T. W. (2009, July). Sri lanka Transport Sector. Retrieved September 20, 2009, from Transport in South Asia: http://web.worldbank.org Import

and

Export

Control

Department.

(2007).

Retrieved

09

15,

2009,

from

http://www.imexport.gov.lk Minerals, I. (2003). Sri lanka - Ceramics boom boosts Mineral demand. 54-55. News Line. (2009, september 15). Retrieved 09 16, 2009, from http://www.priu.gov.lk Perera, P. (2009, January 15). rural marketing strategies. Retrieved 09 16, 2009, from daily news: http://www.dailynews.lk Recorder, B. (2008, July). Retrieved September 18, 2009, from Pakistan Defenence: http://www.defence.pk Retailers and Consumer Services. (2009). Retrieved 09 17, 2009, from Srilanka retailers and consumer products services: http://www.allsrilanka.com

Samarajiva, R. (2007, April 20). Which Industry IN Sri Lanka attracted Foreign investment. Retrieved September 16, 2009, from LIRNE Asia: http://lirneasia.net/2007 Savada, R. R. (2007). Industry. Retrieved September 19, 2009, from Srilanka: A Country Study: http://countrystudies.us School, T. E. (2009, April 4). Entrepreneurship in Sri Lanka. Retrieved September 20, 2009, from International Entrepreneurship : http://www.internationalentrepreneurship.com (2009). Srilanka Trade. Srilanka, S. T. (2007). The Panel of United Nations. Kuala Lumpur. Statistics, D. o. (2006-07). Household Income and Expenditure Survey. Department of Census and Statistics . Stone, C. (2003). Srilanka expands Sapphire digging . Coloured Stone: V 16, no. 1 , 74. Storage and Warehouses In Srilanka. (2009). Retrieved 09 16, 2009, from Shipping international: http://sri-lanka.shipping-international.com Trade Policy. (2009). Retrieved 09 16, 2009, from srilanka export development board: http://www.srilankabusiness.com Tribune, I. H. (2008). Srilanka Toourism revives slowly. The Golbal Edition of New York times: International Herald Tribune . USITC. (2009). Retrieved 09 18, 2009, from United States International Trade Commission: http://www.usitc.gov

APPENDIX:

• Appendix 1:

•

Appendix 2:

•

Appendix 3:

• Appendix 4:

Age 75+ 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5 -9 0 -4

• Appendix 5:

Sinhalese: 73.8% Sri Lanka moors : 7.2% Indian Tamil

: 4.6%

Sri Lanka Tamils : 3.9% Others: 0.5% (Factbook, 2009)