The first Sinhalese arrived in Sri Lanka late in the 6th century B.C. probably from northern India. Buddhism was introduced in about the mid-third century B.C., and a great civilization developed at the cities of Anuradhapura (kingdom from circa 200 B.C. to circa A.D. 1000) and Polonnaruwa (from about 1070 to 1200).

In the 14th century, a south Indian dynasty established a Tamil kingdom in northern Sri Lanka. The coastal areas of the island were controlled by the Portuguese in the 16th century and by the Dutch in the 17th century. The island was ceded to the British in 1796, became a crown colony in 1802, and was united under British rule by 1815.

As Ceylon, it became independent in 1948; its name was changed to Sri Lanka in 1972. Tensions between the Sinhalese majority and Tamil separatists erupted into war in 1983. Tens of thousands have died in the ethnic conflict that continues to fester.

After two decades of fighting, the government and Liberation Tigers of Tamil Eelam (LTTE) formalized a cease-fire in February 2002 with Norway brokering peace negotiations. Violence between the LTTE and government forces intensified in 2006 and the government regained control of the Eastern Province in 2007.

In January 2008, the government officially withdrew from the ceasefire, and by late January 2009, the LTTE remained in control of a small and shrinking area of Mullaitivu district in the North.

Source: CIA World Fact Book

Population: 21,324,791 note: since the outbreak of hostilities between the government and armed Tamil separatists in the mid-1980s, several hundred thousand Tamil civilians have fled the island and more than 200,000 Tamils have sought refuge in the West (July 2009 est.)

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Age structure: 0-14 years: 23.9% (male 2,594,815/female 2,493,002) 15-64 years: 68% (male 7,089,307/female 7,418,123) 65 years and over: 8.1% (male 803,172/female 926,372) (2009 est.)

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Median age: total: 30.9 years male: 29.9 years female: 31.8 years (2009 est.)

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Population growth rate: 0.904% (2009 est.)

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Birth rate: 16.26 births/1,000 population (2009 est.)

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Death rate: 6.07 deaths/1,000 population (2008 est.)

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Net migration rate: -1.09 migrant(s)/1,000 population (2009 est.)

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Urbanization: urban population: 15% of total population (2008) rate of urbanization: 0.5% annual rate of change (2005-10 est.)

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Sex ratio: at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.96 male(s)/female 65 years and over: 0.87 male(s)/female total population: 0.97 male(s)/female (2009 est.)

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Infant mortality rate: total: 18.57 deaths/1,000 live births male: 20.33 deaths/1,000 live births female: 16.73 deaths/1,000 live births (2009 est.)

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Life expectancy at birth: total population: 75.14 years male: 73.08 years female: 77.28 years (2009 est.)

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Total fertility rate: 1.99 children born/woman (2009 est.)

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HIV/AIDS - adult prevalence rate: less than 0.1% (2001 est.)

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HIV/AIDS - people living with HIV/AIDS: 3,800 (2007 est.)

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HIV/AIDS - deaths: fewer than 200 (2003 est.)

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Major infectious diseases: degree of risk: high food or waterborne diseases: bacterial diarrhea and hepatitis A vectorborne disease: dengue fever and chikungunya water contact disease: leptospirosis animal contact disease: rabies (2009)

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Nationality: noun: Sri Lankan(s) adjective: Sri Lankan

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Ethnic groups: Sinhalese 73.8%, Sri Lankan Moors 7.2%, Indian Tamil 4.6%, Sri Lankan Tamil 3.9%, other 0.5%, unspecified 10% (2001 census provisional data)

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Religions: Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2%, unspecified 10% (2001 census provisional data)

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Languages: Sinhala (official and national language) 74%, Tamil (national language) 18%, other 8% note: English is commonly used in government and is spoken competently by about 10% of the population

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Literacy: definition: age 15 and over can read and write total population: 90.7% male: 92.3% female: 89.1% (2001 census)

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Education expenditures: NA

In 1977, Colombo abandoned statist economic policies and its import substitution trade policy for more market-oriented policies, export-oriented trade, and encouragement of foreign investment. Recent changes in government, however, have brought some policy reversals.

Currently, the ruling Sri Lanka Freedom Party has a more statist economic approach, which seeks to reduce poverty by steering investment to disadvantaged areas, developing small and medium enterprises, promoting agriculture, and expanding the already enormous civil service.

The government has halted privatizations. Although suffering a brutal civil war that began in 1983, Sri Lanka saw GDP growth average 4.5% in the last 10 years with the exception of a recession in 2001.

In late December 2004, a major tsunami took about 31,000 lives, left more than 6,300 missing and 443,000 displaced, and destroyed an estimated $1.5 billion worth of property. Government spending on development and fighting the LTTE drove growth to about 6% per year in 2006-08, but high government spending and high oil and commodity prices also pushed inflation past 20% in 2008.

Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, port construction, telecommunications, and insurance and banking. In 2008, plantation crops made up only about 20% of exports (compared with more than 90% in 1970), while textiles and garments accounted for more than 40%.

About 1.5 million Sri Lankans work abroad, 90% of them in the Middle East. They send home more than $2.5 billion a year. The 25-year civil conflict between LTTE and the government of Sri Lanka has been a serious impediment to economic activities. By mid February 2009, the LTTE remained in control of small and shrinking area in the North. The conflict continues to cast a shadow over the economy.

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GDP (purchasing power parity): $91.9 billion (2008 est.) $86.7 billion (2007) $81.18 billion (2006) note: data are in 2008 US dollars

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GDP (official exchange rate): $38 billion (2008 est.)

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GDP - real growth rate: 6% (2008 est.) 6.8% (2007 est.) 7.7% (2006 est.)

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GDP - per capita (PPP): $4,300 (2008 est.) $4,100 (2007 est.) $3,900 (2006 est.) note: data are in 2008 US dollars

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GDP - composition by sector: agriculture: 15.5% industry: 27% services: 57.5% (2008 est.)

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Labor force: 7.588 million note: excludes northern and eastern provinces (2008 est.)

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Labor force - by occupation: agriculture: 34.7% industry: 26.1% services: 39.2% (30 September 2008 est.)

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Unemployment rate: 5.2% (30 September 2008 est.)

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Household income or consumption by percentage share: lowest 10%: 1.1% highest 10%: 39.7% (2004)

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Distribution of family income - Gini index: 49 (2007)

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Investment (gross fixed): 30% of GDP (2008 est.)

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Budget: revenues: $7.8 billion expenditures: $11 billion (2009 est.)

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Public debt: 78% of GDP (2008 est.)

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Inflation rate (consumer prices): 14.4% (2008 est.)

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Central bank discount rate: 11.75% (12 February 2009)

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Commercial bank prime lending rate: 18.5% (31 December 2008)

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Stock of money: $2.55 billion (30 September 2008)

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Stock of quasi money: $9.01 billion (30 September 2008)

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Stock of domestic credit: $15.92 billion (30 September 2008)

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Market value of publicly traded shares: $4.32 billion (31 December 2008)

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Agriculture - products: rice, sugarcane, grains, pulses, oilseed, spices, tea, rubber, coconuts; milk, eggs, hides, beef; fish

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Industries: processing of rubber, tea, coconuts, tobacco and other agricultural commodities; telecommunications, insurance, banking; clothing, textiles; cement, petroleum refining, information technology services Industrial production growth rate: 6.2% (2008 est.)

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Electricity - production: 9.814 billion kWh (2007 est.)

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Electricity - consumption: 8.276 billion kWh (2007 est.)

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Electricity - exports: 0 kWh (2008 est.)

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Electricity - imports: 0 kWh (2008 est.)

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Oil - production: 0 bbl/day (2008 est.)

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Oil - consumption: 86,030 bbl/day (2006 est.)

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Oil - exports: 291.9 bbl/day (2005)

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Oil - imports: 87,090 bbl/day (2005)

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Oil - proved reserves: 0 bbl (1 January 2008 est.)

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Natural gas - production: 0 cu m (2008 est.)

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Natural gas - consumption: 0 cu m (2008 est.)

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Natural gas - exports: 0 cu m (2008 est.)

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Natural gas - proved reserves: 0 cu m (1 January 2008 est.)

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Current account balance: -$1.981 billion (2008 est.)

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Exports: $8.1 billion f.o.b. (2008 est.)

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Exports - commodities: textiles and apparel, tea and spices; diamonds, emeralds, rubies; coconut products, rubber manufactures, fish

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Exports - partners: US 25.5%, UK 13.2%, India 6.7%, Germany 5.7%, Italy 5.1% (2007)

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Imports: $14.05 billion f.o.b. (2008 est.)

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Imports - commodities: textile fabrics, mineral products, petroleum, foodstuffs, machinery and transportation equipment

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Imports - partners: India 23.1%, Singapore 9.9%, China 8.2%, Iran 7.5%, Hong Kong 6.4% (2007)

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Reserves of foreign exchange and gold: $3.364 billion (31 December 2008 est.)

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Debt - external: $12.99 billion (31 December 2008 est.)

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Stock of direct foreign investment - at home: $NA

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Stock of direct foreign investment - abroad: $NA

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Exchange rates: Sri Lankan rupees (LKR) per US dollar - 108.33 (2008), 110.78 (2007), 103.99 (2006), 100.498 (2005), 101.194 (2004)