Sri Lanka  

Whilst the unemployment rate is low at 6%, workers have low access to physical capital and a very high inflation rate of 17%. In the banking sector, 9.6% of loans are in default, and an interest margin of 5.16 percentage points indicates low competition and efficiency. Levels of household expenditure, at 23% of GDP, indicate a lack of domestic demand, and domestic savings are only 17% of GDP. Performance with regard to attracting foreign direct investment lies at 82nd, with foreign direct investment at only 2% of GDP. Sri Lanka has modest export revenues relative to the cost of imported goods, but a raw material concentration level of just over 5% hints at some industrialisation and the capacity to produce high value added goods and services in addition to primary products.

Sri Lankan businesses face eight formal procedures required to start a business – this ranks the country at 31st on this variable but only 5,234 new businesses registered in 2007, an average figure, internationally. Internet infrastructure, as measured by secure internet servers, is very low, with only two per every one million people. Access to personal computers is also extremely low – 37 per 1,000 people – and a below average level of bandwidth does not encourage development in the technology industry. ICT and high-tech exports are also low at less than 1.7% of goods and 2% of manufactured product exports, respectively. Value added in services, however, is near the global average. Levels of royalty receipts are low, meaning the country finds it difficult to capitalise on the intellectual property it does produce, and investment in R&D is very low, at 0.3% of GDP.

Sri Lanka is categorised as a partial democracy, with much of the political power residing with the executive. Sri Lankan citizens have relatively limited political rights and civil liberties, ranking the country 72nd and 69th, respectively, on these variables. However, with regard to election to the legislative and executive arms of government, there are both open competition amongst rival parties and well-regulated electoral procedures. Nominally, significant constraints are placed on the power of the executive, but these could be improved – Sri Lanka is placed at only 42nd, internationally, according to this variable – and the judiciary is not independent. The regime is deemed stable, as the last fundamental change in the political system occurred over 50 years ago.

Sri Lankan primary school enrolment is very high, at 97%, ranking the country 29th, globally. However, this level decreases significantly in secondary and tertiary education, with only 87% and 5% enrolment, respectively, at each of these levels. Consequently, workers have an average of 5.7 years of secondary education, but only 2.4 years of tertiary education. It is clear that investment could be improved, as there is only one primary school teacher per every 23 children enrolled in schools. There is good parity between the sexes in education in Sri Lanka, with 104 girls to every 100 boys, ranking the country 12th on this count.

Sri Lanka’s health infrastructure is poorly served, with only six medical practitioners to every 10,000 people. However, access to hospital beds is slightly more reasonable with 31 per 10,000 capita. More than eight out of 10 Sri Lankans have access to improved sanitation facilities, and 85% of respondents are satisfied with the water quality.* An infant mortality rate of 12 per 1,000 births ranks Sri Lanka 42nd on this variable, and 22% of the population remain undernourished, ranking an even lower 79th. However, health-adjusted life expectancies are quite high, at 62 years. Performance on the subjective health variables is near the global average. Eight out of 10 Sri Lankans report being satisfied with their health, but over three out of 10 consider themselves to have health problems.* The latter variable is consistent with the 28% who reported having felt pain recently.* Six-tenths of the population deem themselves well rested, placing Sri Lanka 85th according to this factor.*

Sri Lanka’s severe security problems are partially related to internal challenges relating to the presence of refugees, internally displaced individuals, group grievances arising from targeted violence towards certain groups, and human flight. There are also some instances of state-sponsored political violence against citizens, such as torture or political imprisonment, with Sri Lanka ranking 88th, globally, in this regard. There were extremely high levels of casualties due to civil war in 2008, placing Sri Lanka in the bottom six, globally. All this notwithstanding, the homicide level is merely average at approximately seven deaths per 100,000 people and only 6% of respondents claim to have had money or property stolen in 2008.* Further, a very low 3% report having been assaulted and over seven out of 10 feel safe walking home alone at night.* Sri Lanka ranks in the top quartile on all of these last three variables.

Enforcement of the rule of law is average, ranking Sri Lanka at 47th, globally, whilst regulation of economic and commercial activity is less effective, moving Sri Lanka down to 61st on this variable. Public opinion of government and the corporate world is therefore distrustful, with more than eight out of 10 people believing in widespread corruption.* Citizens are afforded the legal right to free and fair participation in the political system, but this is in practice limited, and only one-third of individuals trust in the honesty of elections.* A higher 78% have confidence in the judicial system and the military holds the trust of 93% of Sri Lankan citizens.*

Sri Lankan citizens have freedom to exercise and practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Perceptions of tolerance of difference and diversity are mixed, with 74% believing that Sri Lanka is a good place for racial and ethnic minorities, while only 61% feel that Sri Lanka creates a favourable environment for immigrants.* With regard to freedom of choice in matters of daily life, 76% of Sri Lankans are satisfied with their freedom to choose in their everyday affairs, placing their country at 46 out of 104 on this variable.*

In terms of the proportion of the population that is married – a remarkable 72% – Sri Lanka ranks first in the world, highlighting the importance of the country’s familial support network.* Sri Lankans are also extremely religious, as measured by personal practices such as prayer and attendance at public worship, ranking Sri Lanka 13th, globally, and suggesting that Sri Lankans have good access to a religious support network.* A moderate 84% of Sri Lankans feel that friends and family can be relied upon for help in time of need, and a very high 39% extend this good will beyond their inner circle by engaging in volunteer activities.* On other variables, performance is moderate, with 38% claiming to have donated to charity and 47% to have helped a stranger, in the month before the data was gathered.* Data on levels of trust, perceptions of the importance of friends, and membership in groups were not available.

* Data taken from the Gallup World Poll

• Back to top