You are here -allRefer - Reference - Country Study & Country Guide - Sri Lanka >

allRefer Reference and Encyclopedia Resource

allRefer    
allRefer
   


-- Country Study & Guide --     

 

Sri Lanka

 
Country Guide
Afghanistan
Albania
Algeria
Angola
Armenia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Bhutan
Bolivia
Brazil
Bulgaria
Cambodia
Chad
Chile
China
Colombia
Caribbean Islands
Comoros
Cyprus
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
Georgia
Germany
Germany (East)
Ghana
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Israel
Cote d'Ivoire
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Latvia
Laos
Lebanon
Libya
Lithuania
Macau
Madagascar
Maldives
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Nepal
Nicaragua
Nigeria
North Korea
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Seychelles
Singapore
Somalia
South Africa
South Korea
Soviet Union [USSR]
Spain
Sri Lanka
Sudan
Syria
Tajikistan
Thailand
Turkmenistan
Turkey
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Venezuela
Vietnam
Yugoslavia
Zaire

Sri Lanka

Internal Trade

An overall measure of the size and shape of the internal market was provided by the Central Bank of Sri Lanka's breakdown of national income according to expenditures by the several sectors of the economy. In 1986 gross domestic expenditure was estimated at Rs200.3 billion. About Rs139.4 billion represented private consumption; Rs18.5 billion was for government consumption; and Rs42.3 billion went into fixed capital investment, of which almost Rs33 billion was in the state sector. The aggregate of private sector expenditures constituted just over 74 percent of total outlays.

No detailed information was available concerning consumer outlays in the late 1980s. Earlier surveys indicated that many families devoted about 50 percent of their total expenditure to food. Some government policies in the 1960s and the early 1970s kept inequalities of consumption relatively low. These measures included the subsidizing and rationing of essential goods, restrictions on imports of luxury goods, and heavy income taxes. The easing of many of these policies after the economy was liberalized in 1977 resulted in higher food prices and a flood of imported luxury items. According to the Consumer Finance and Socio-Economic Survey carried out by the Central Bank in 1978 and 1979, the poorest 10 percent of the population controlled 1.2 percent of total personal income, while the richest 10 percent had 39 percent of personal income.

Traditionally, the state has played an important role in retail trade. The government-controlled Co-operative Wholesale Establishment, which was created during World War II to handle the import and distribution of foodstuffs, had monopolies over the sale of imported sugar, canned fish, cement, hardware, and other products at various times in the 1960s and early 1970s. The monopolies were broken up after 1977, when government policy shifted toward promoting competition. In 1986 however, there still were 8,644 cooperatives serving as retail outlets. As in the past, they relied heavily on the distribution of basic consumer items such as rice, flour, and sugar under the food stamps scheme (see Sri Lanka - Budgetary Process, Revenues, and Expenditures , this ch.). They also helped overcome shortages of essential goods in areas where security difficulties made private business unwilling to operate. In 1986 their turnover was about Rs1.1 billion.

The ten state trading corporations in existence in early 1988 were expected to be commercially competitive with the private sector. Most were organized around specific commodities, such as building materials, fertilizer, paddy, textiles, gems, and drugs. Their total turnover was around Rs5.6 billion in 1986, down from Rs6.3 billion in 1985.

Importers and wholesalers had their own warehouses, most of them in Colombo, but some in the provinces. For the most part, wholesalers did not actively engage in trying to sell their wares, but left it to retailers to take the initiative. Markup margins varied widely. Inasmuch as traders were not generally in a position to obtain credit from institutional sources, sales tended to be on a cash basis, although the larger wholesalers did extend limited amounts of credit.

Data as of October 1988


Sri Lanka - TABLE OF CONTENTS

Sri Lanka -

Chapter 3. The Economy


Go Up - Top of Page

Make allRefer Reference your HomepageAdd allRefer Reference to your FavoritesGo to Top of PagePrint this PageSend this Page to a Friend


Information Courtesy: The Library of Congress - Country Studies


Content on this web site is provided for informational purposes only. We accept no responsibility for any loss, injury or inconvenience sustained by any person resulting from information published on this site. We encourage you to verify any critical information with the relevant authorities.

 

 

 
 


About Us | Contact Us | Terms of Use | Privacy | Links Directory
Link to allRefer | Add allRefer Search to your site

allRefer
All Rights reserved. Site best viewed in 800 x 600 resolution.