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Sri Lanka FINANCE
![[JPEG]](http://lcweb2.loc.gov/frd/cs/jpeg.gif)
Offshore fishermen on their perches near Galle
Courtesy Embassy of Sri Lanka
Coastal fishing fleet north of Colombo
Courtesy Embassy of Sri Lanka
After the early years of independence, the government
consistently ran a budgetary deficit, which in the 1980s amounted
to 15 percent of GDP. Foreign aid, which increased substantially
after 1977, financed over 50 percent of the deficit in the 1980s
and was essential for the health of the economy. Historically, a
relatively high proportion of government expenditure was on
social welfare programs, including health, education, and
subsidized food, but after 1977 the importance of these programs,
although still substantial by regional standards, declined.
Banking and credit were dominated by government-controlled
institutions, but the importance of the private sector in
financial services was increasing.
Data as of October 1988
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![[JPEG]](http://lcweb2.loc.gov/frd/cs/sri_lanka/lk03_10a.jpg)
![[JPEG]](http://lcweb2.loc.gov/frd/cs/sri_lanka/lk03_10b.jpg)
