Sri Lanka is a lower-middle-income country with a population of approximately 22 million (as of 2023). Located in South Asia, it is an island nation in the Indian Ocean, strategically positioned along major maritime trade routes. Sri Lanka shares maritime borders with India and the Maldives. The country has diverse natural resources, including fertile agricultural land, mineral deposits such as graphite and ilmenite, and a rich biodiversity. Key agricultural exports include tea, rubber, coconut, and spices, with tea being one of its most recognized global products. The services sector—particularly tourism, transport, and financial services—plays an increasingly significant economic role.

Sri Lanka has historically been a regional leader in human development, showing strong outcomes in health, education, and social indicators relative to its income level. However, recent years have posed considerable economic challenges, including fiscal imbalances, rising debt levels, and inflationary pressures. These issues have been compounded by external shocks such as the COVID-19 pandemic and fluctuations in global commodity prices.

Sri Lanka is implementing macroeconomic stabilization measures and structural reforms with support from international partners. Key priorities include restoring debt sustainability, strengthening governance, expanding social protection, and promoting inclusive and sustainable growth.

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