Sri Lanka

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. 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 May 2009, the government announced that its military had finally defeated the remnants of the LTTE and that its leader, Velupillai PRABHAKARAN, had been killed.

Economical characteristics

 * Currency: Sri Lankan Rupee (ISO code: LKR)
 * Central bank discount rate: 7.5% (31 December 2009)
 * Commercial banks lending rate: 10.91% (31 December 2009)
 * Stock of money (M1): $2.462 billion (31 December 2008)
 * Quasi money (with M1 makes M2): $11.01 billion (31 December 2008)

Notable events:

 * Banking crisis: 1989-1993
 * Years in inflation: 3.2% (share of years 1948-2009 with annual inflation above 20 per cent per annum)
 * Public default: 1979, 1981-1983 (external), 1996 (domestic)

Links

 * Sri Lanka on Wikipedia
 * Central bank of Sri Lanka
 * Country profile (pdf) from the Enterprise Studies page (part of the The World Bank Group)
 * Studies from the Library of Congress (1986-1998)
 * BBC country profile