Sri Lanka is classified as a lower middle income nation by the World Bank and is the 68th largest economy in the world by GDP. The main economic sectors of the country are tourism, tea export, apparel, textile, rice production and other agricultural products.

Recent Macro

Recent Macro

  • GDP contracted -3.6% in 2020, due to the Coronavirus pandemic, but 2021 is forecast to see a recovery of 3.4% growth

  • Sri Lanka ranked 99th in the World Bank’s Ease of Doing Business Index

  • The Gross Domestic Product per capita in Sri Lanka was last recorded at US$ 3,853 in 2019 – this fell during 2020 but is expected to recover well in 2021

  • GDP per capita in Sri Lanka averaged US$ 1,059 from 1960 until 2019 (source: World Bank)


Key Info

Key Info


  • Currency of Sri Lanka is the Sri Lankan Rupee (LKR)


  • Tropical and hot climate with distinct wet and dry seasons in the north and east coast and the south and west coast 

  • Coastal areas enjoy temperatures between 28-32°C (82-89°F) while upland areas are cooler and more temperate - yearly average around 16-20°C (60-68°F)

  • South-west wet season is May - September, dry season is December - March

  • North-east wet season is October - January, dry season is May - September


  • Withholding tax is currently 10% for foreigners


  • Travel & Tourism in Sri Lanka fell by 17.6% in 2019 to an industry revenue of US$ 3.6bn. This fell again in 2020 to US$ 956m, due to Coronavirus, but is expected to rise quickly in 2021

  • Number of international tourist arrivals to Sri Lanka in 2019 reached 1.9m people, down 16% from 2018

  • The average revenue per user (ARPU) currently sits at US$ 110
  • Indian tourists benefit from the geographical distance of Sri Lanka, and account for 18% of all arrivals




  • The housing market is experiencing a current boom, amidst a surging tourism sector, coupled with weak residential construction activity

  • House prices grew 17% during 2018 (latest available info)

  • Foreigners may own freehold title on condominium apartments

  • Land can only be leased up to 99 years

  • Stamp duty is 4% and legal fees are around 1-2%

  • VAT on new apartment sales was reduced to 0% in 2020
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