The Economy

Tea pickers in Nuwara Eliya

Sri Lanka's economy has traditionally depended upon agriculture, both growing and processing crops. Rice is the main crop for subsistence farmers, with a range of plantation crops grown for export, especially tea, rubber and coconuts. The tea industry in particular has undergone a number of changes in recent years (see the Case Study), but prices and output are beginning to rise once more. Fruit, vegetables and spices are also grown.

Today manufactured goods are becoming increasingly important, especially textiles and clothing. This is shown by the drop in the proportion of export earnings for plantation crops from 93% in 1970 to 20% in 1960 with textiles and clothing accounting for 63%. There is also a thriving gemstone industry, notably in sapphires.