With an economy worth $59 billion (2011 IMF estimate) ($158 billion PPP estimate), and a per capita GDP of about $7000 (PPP), Sri Lanka has mostly had strong growth rates in recent years. In GDP per capita terms, it is ahead of other countries in the South Asian region.

The main economic sectors of the country are tourism, tea export, apparel, textile, rice production and other agricultural products. In addition to these economic sectors, overseas employment contributes highly in foreign exchange, 90% of expatriate Sri Lankans reside in the Middle East.

Since becoming independent from Britain in February 1948, the economy of the country has been affected by natural disasters such as the 2004 Indian Ocean earthquake and a number of insurrections, such as the 1971, the 1987-89 and the 1983-2009 civil war. The parties which ruled the country after 1948 did not implement any national plan or policy on the economy, veering between left and right wing economic practices. The government during 1970-77 period applied pro-left economic policies and practices. Between 1977 and 1994 the country came under UNP rule and between 1994 and 2004 under SLFP rule. Both of these parties applied pro-right policies. In 2001, Sri Lanka faced bankruptcy, with debt reaching 101% of GDP. The impending currency crisis was averted after the country reached a hasty ceasefire agreement with the LTTE and brokered substantial foreign loans. After 2004 the UPFA government has concentrated on mass production of goods for domestic consumption such as rice, grain and other agricultural products.

Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka (ⁱ/ʃriː ˈlɑːŋkə/, /sriːˈlɑːŋkə/, or /sriːˈlæŋkə/;Sinhala: ශ්‍රී ලංකාව, Tamil: இலங்கை), is a country off the southern coast of the Indian subcontinent in South Asia. Known until 1972 as Ceylon ( /sɨˈlɒn/, /seɪˈlɒn/, or /siːˈlɒn/), Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar, the Palk Strait, and lies in the vicinity of India and the Maldives.

As a result of its location in the path of major sea routes, Sri Lanka is a strategic naval link between West Asia and South East Asia. It was an important stop on the ancient Silk Road. Sri Lanka has also been a center of the Buddhist religion and culture from ancient times, being the nation where the Buddhist teachings were first written down as well as the oldest continually Buddhist country. Sri Lanka boasts a diverse range of cultures, languages and religions. The Sinhalese people form the majority of the population; Tamils, who are concentrated in the north and east of the island, form the largest ethnic minority. Other communities include Moors, Burghers, Kaffirs, Malays and the aboriginal Vedda people.