Sri Lanka

Sri Lanka's second chance: bankrupt in 2022, now rebuilding under a government that promises to end the corruption of the past.

Crowds waving Sri Lankan flags outside the colonnaded Presidential Secretariat in Colombo
Protesters outside the Presidential Secretariat in Colombo in 2022, during the uprising that drove the Rajapaksa family from power. Photo: AntanO / Wikimedia Commons, CC BY-SA 4.0
Rows of tea bushes on a steep hillside above a valley of villages
Tea estates in the hill country near Nuwara Eliya. Photo: Vyacheslav Argenberg / Wikimedia Commons, CC BY-SA 4.0
Portrait of Chamath Palihapitiya
Chamath Palihapitiya, the Colombo-born investor and All-In podcast co-host, in 2025. Photo: Christopher Michel / Wikimedia Commons, CC BY-SA 4.0

Editor's view · First written June 2023 · Updated October 2026

Sri Lanka's second chance

Most Americans know Sri Lanka, if at all, as a tropical island of serene beaches, elephants roaming in the wild and inexpensive resorts, and as the source of the fine tea they drink. Some know, vaguely, that the British science fiction writer Arthur C. Clarke lived there for half a century. Canadians and Australians know Sri Lankans far better, because they took in large numbers of Tamil refugees fleeing the civil war. Sri Lankans also play excellent cricket; they won the World Cup in 1996, a feat few Americans noticed.

Fewer still know how old the American ties are. American missionaries arrived in Jaffna in 1816 and opened schools that educated generations of Tamils. In 1880 Henry Steel Olcott, a Union Army veteran of the Civil War, came to Ceylon and helped spark a Buddhist revival. He mentored the young Anagarika Dharmapala, who spoke for Buddhism at the World's Parliament of Religions in Chicago in 1893.

Those ties frayed in the 20th century. When Ceylon took over American oil companies' assets in 1962, Washington cut off aid. Sri Lanka declared itself nonaligned, and the Cold War rivals courted it without doing much for its people. From 1983 to 2009 the government fought the Tamil Tigers, who wanted an independent Tamil nation in the north and east. A UN panel later found that tens of thousands of civilians may have died in the war's final months. Western governments condemned Sri Lanka's human rights record, even as their citizens kept drinking its tea.

In this century China and America have courted Sri Lanka for its position on the Indian Ocean sea lanes, and Chinese loans built a port that Sri Lanka had to lease to China when it could not repay. In 2022 the country went bankrupt, and protesters drove the Rajapaksa family from power. In 2024 voters elected an outsider who promised to end corruption. Meanwhile, America has become the biggest buyer of Sri Lanka's exports, mainly apparel, tea and rubber.

Americans think of Sundar Pichai and Satya Nadella when they think of South Asian success in tech. Sri Lanka has given us a gem of its own: Chamath Palihapitiya, born in Colombo and raised in Canada, an early Facebook executive turned billionaire investor. His All-In podcast, co-hosted with David Sacks, President Trump's former AI and crypto adviser, has become a forum where America's AI policy is argued. An island of 22 million that Americans rarely think about matters more than its size suggests.

— John Laxmi


Editor's comments

The editor comments on Sri Lanka when events warrant, rather than on a fixed schedule. Newest first.

Sri Lanka in proportion

Share of the five countries, 2024

People: 22 million1.1%
Economy: $100 billion2.1%

Size of the economy, 1990–2024

GDP in current U.S. dollars, not adjusted for inflation.

1990$8.0bn
2000$17bn
2010$59bn
2020$84bn
2024$100bn

Then and now

1990 (lighter bar) and 2024 (darker bar)

Income per person, 1990$491
Income per person, 2024$4,545
Life expectancy, 199069.2 yrs
Life expectancy, 202477.7 yrs

Life expectancy bars are drawn on a scale of 0 to 85 years.

Exchange rate

Rs 330.55 per US$

Oct 12, 2026 · ExchangeRate-API · updated weekly

U.S. trade in goods with Sri Lanka

20252026 Jan–Jun
U.S. exports$369m$316m
U.S. imports$3.1bn$1.5bn
U.S. balance−$2.7bn−$1.2bn

U.S. Census Bureau · updated monthly · negative = U.S. deficit

Sources: World Bank, World Development Indicators (population, GDP, GDP per capita, life expectancy). Updated yearly.

Stereotype and Reality

Stereotype: a war-torn island, or simply a beach getaway.

Reality: the war ended in 2009. Sri Lanka is the richest of the five countries on this site, with income per person of $4,545, about two-thirds higher than India's.

Source: World Bank, GDP per capita, 2024

Other countries

India · Pakistan · Bangladesh · Nepal