Updated May 17, 2018
Sri Lanka
The Democratic Socialist Republic of Sri Lanka, known as
This result was affirmed in parliamentary elections later in
Ceylon until 1972, is a constitutional democracy in South
2015 that led to the formation of a unity government
Asia with relatively high levels of development. It is
supportive of Sirisena’s reform agenda, including efforts to
located in the Indian Ocean off the southeastern tip of
reduce the authority of the executive presidency.
India’s Deccan Peninsula.
Historical Setting
The island nation was settled by successive waves of
migration from India beginning in the 5th century BC. Indo-
Aryans from northern India established Sinhalese Buddhist
kingdoms in the central part of the island. Tamil Hindus
from southern India also settled in northeastern coastal
areas and established a kingdom on the Jaffna Peninsula.
Beginning in the 16th century, Sri Lanka was colonized in
succession by the Portuguese, Dutch, and English.
Although Ceylon gained its independence from Britain
peacefully in 1948, succeeding decades were marred by

ethnic conflict between the country’s Sinhalese majority,
Sri Lanka in Brief
clustered in the densely populated South and West, and a
largely Hindu Tamil minority living in the northern and
Population: 22.4 million 2017 est.
eastern provinces. Following independence, the Tamils—
Area: Slightly larger than West Virginia
who had attained educational and civil service positions
Head of Government: President Maithirpala Sirisena, elected
under the British—increasingly found themselves
Jan. 2015
discriminated against by the Sinhalese-dominated
Ethnic Groups: Sinhalese 74.9%, Sri Lanka Tamils 11.2%,
government, which made Sinhala the sole official language
Moors 9.2%, Indian Tamils 4.2% 2012 est.
and gave preferences to Sinhalese in university admissions
and government jobs. The Sinhalese, who had deeply
Languages: Sinhalese 74%, Tamil 18%.
resented British favoritism toward the Tamils, saw
Religions: Buddhist 70.2%, Hindu 12.6%, Muslim 9.7%,
themselves not only as the majority, but also as a minority
Christians 6.1%. 2012 est.
in a larger Tamil context that includes over 60 million
GDP: 4.7% growth 2017, $13,000 per capita GDP in PPP. 2017
Tamils across the Palk Strait in India’s southern state of
est.
Tamil Nadu and elsewhere in India.
Unemployment: 4% 2017 est.
Civil War
Labor Force: Agriculture 28.4%, industry 25.7%, services 45.9%
For two-and-a-half decades, from 1983 to 2009, political,
2016 est.
social, and economic development was constrained by
Exports: Garments, tea, spices, rubber, gems and jewelry,
ethnic conflict and war between the government and the
refined petroleum, fish and coconut products.
Liberation Tigers of Tamil Eelam (LTTE), also known as
the Tamil Tigers. The war cost an estimated 70,000-
Destination of exports: U.S. 24.6%, U.K. 8.9%, India 5.8%,
130,000 lives. The LTTE rebels had sought to establish a
Singapore 4.5%, 2017 est.
separate state or internal self-rule in the Tamil-dominated
Sources: CIA, Economist Intelligence Unit, CRS Map
areas of the island’s north and east. The United States
designated the LTTE as a Foreign Terrorist Organization in
Current Political Developments
1997.
Some reformers in Sri Lanka hoped that a new constitution
After a violent end to the civil war in May 2009, when the
would decentralize political power (a key interest of the
military crushed LTTE forces and precipitated a
Tamil minority) and reduce the strength of the executive
humanitarian emergency in Sri Lanka’s Tamil-dominated
presidency. Observers now expect, however, that the
north, attention turned to whether the government had the
current Government of President Sirisena of the Sri Lankan
ability and intention to build a stable peace in Sri Lanka.
Freedom Party (SLFP) and Prime Minister Wickremesinghe
Former President Mahinda Rajapaksa, elected in 2005,
of the United National Party (UNP) will not be able to pass
faced criticism for an allegedly insufficient response to
a reform constitution. Rifts within the coalition government
reported war crimes, a nepotistic and ethnically biased
reportedly deepened as a result of its poor performance in
government, increasing restrictions on media, and uneven
local elections in February 2018. The newly-formed
economic development. In the January 2015 presidential
Sinhalese nationalist party Sri Lanka Podujana Peramuna
election he was defeated by President Maithripala Sirisena.
(SLPP) political party received 45% of the vote, compared
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link to page 2 Sri Lanka
to the government’s 33% for the UNP and 9% for the SLFP
back away from supporting any significant involvement of
in the February elections. The government’s full term ends
international judges in a special judicial mechanism to
in mid-2020.
prosecute war crimes. The High Commissioner for Human
Rights Zeid Ra’ad Al Hussein noted steps taken by Sri
Some observers expect the religious and ethnic tensions that
Lanka but also called for a transitional justice mechanism to
have hindered reforms to continue. Some have viewed
Sirisena’s attempts to address Tamil concerns as
deal with past human rights abuses. A Sri Lankan Office of
Missing Persons is being established, and a Right to
undermining his support with elements within the Sinhalese
Information law was passed by the Sri Lankan parliament
community and possibly contributing to a rise in Sinhalese
in June 2016. Intercommunal tensions between Sinhalese
nationalism. The rise of ethnic nationalism is viewed by
and Muslim groups led to a wave of violence and a state of
some observers as a threat both to Sirisena’s political
emergency in the Kandy District of the central highlands in
fortunes as well as efforts to achieve lasting reconciliation
March 2018.
between the majority Sinhalese and the Tamil minority,
which is currently represented primarily by the Tamil
Strategic Setting
National Alliance (TNA), the main Tamil party in
Sri Lanka is situated near strategically important sea lanes
parliament. Supporters of former President Rajapaksa, who
that transit the Indian Ocean. These sea lanes link the
is viewed by many as a Sinhalese nationalist, formed the
energy-rich Persian Gulf with the economies of Asia. To
new SLPP to challenge Sirisena’s coalition in 2016. Some
some observers, maritime trade is increasingly integrating
Tamils have become disillusioned with the government’s
the Indian and Pacific Oceans’ littoral regions into a more
efforts to achieve reconciliation. The Tamil Arise
unified strategic arena. Sri Lanka and India share close,
movement also emerged in 2016 to push for Tamil rights.
longstanding historical, cultural, and religious ties. India
U.S.-Sri Lanka Relations
became entangled in a counter-insurgency war against the
LTTE following the signing of the Indo-Sri Lanka
Through its foreign aid and diplomacy the United States has
Agreement of 1987. Between 1987 and 1990, India lost
supported initiatives intended to strengthen governance,
over 1,200 soldiers in this conflict. Prime Minister Rajiv
democratic reform, the rule of law, and human rights in Sri
Gandhi was later killed by an LTTE suicide bomber in
Lanka. The U.S. Agency for International Development
1991. The Sri Lanka-India relationship was strengthened by
(USAID) has maintained a presence in Sri Lanka since
President Sirisena’s February 2015 visit to India, his first
1948. The FY2019 budget request is outlined below. (See
foreign visit as president, and also by Indian Prime Minister
Table 1 below.) The United States is Sri Lanka’s single
Narendra Modi’s March 2015 return visit to Colombo, the
largest market, accounting for approximately 25% of Sri
first by an Indian prime minister in 29 years. During his
Lankan exports. Sri Lanka’s largest exports are garments,
visit, Modi articulated his government’s desire that the
tea, spices, rubber, gems and jewelry, refined petroleum,
Tamil community in Sri Lanka have a just and dignified life
fish, and coconuts/coconut products.
in a unified Sri Lanka. India’s native Tamil populations feel
kinship with Sri Lanka’s Tamils. India, along with the
Table 1. U.S. Foreign Assistance to Sri Lanka
United States, has been an active voice for reconciliation
($ in thousands)
and fair elections. India has also played host to a large
number of Tamil refugees, 100,000 by some estimates, both
FY2016
FY2017
FY2018
FY2019
during and after the Sri Lankan civil war.

Actual
Actual
Req.
Req.
Total
42,504
38,478
3,380
11,480
China-Sri Lanka Relations

DA
—
—
—
Some analysts in India have expressed concern over Sri
Lanka’s deepening relationship with China, including
ESF
38,040
31,017
—
—
Chinese submarine visits to Sri Lanka. Beijing has invested
ESDF
—
—

8,100
significantly in Sri Lanka’s infrastructure in recent years.
FMF
—
500
—
—
Debt to Chinese entities accounts for $8 billion out of Sri
IMET
584
581
500
500
Lanka’s total debt burden of $65 billion. In 2017, Sri Lanka
INCLE
1,000
1,000
—
—
leased port facilities at Hambantota to China for 99 years
NADR
2,880
5,380
2,880
2,880
for an estimated $1.1 billion to help Sri Lanka reduce its
debt. China considers its activities in Sri Lanka to be part of
Source: Department of State, Congressional Budget Justification,
its Belt and Road Initiative aimed in part at gaining access
Foreign Operations, FY2017, FY2018, FY 2019.
to ports in the Indian Ocean to help secure China’s
The United Nations, Sri Lanka, and Human Rights
interests along vital sea lanes. China’s presence in Sri
Sri Lanka co-sponsored a U.N. Human Rights Council
Lanka and elsewhere in the Indian Ocean, in combination
with recent border tensions between India and China on the
resolution on accountability for human rights abuses during
Bhutan-China border, is causing increasing concern among
the Sri Lanka civil war that was adopted by the Council in
October 2015. The resolution followed the September 2015
some strategic analysts and policymakers in New Delhi and
the United States.
publication of the Report of the U.N. Office of the High
Commissioner for Human Rights Investigation on Sri
Bruce Vaughn, Specialist in Asian Affairs
Lanka and was viewed by many at the time as a positive
step to advance justice in Sri Lanka. Since the adoption of
IF10213
the resolution, however, President Sirisena has appeared to

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Sri Lanka



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https://crsreports.congress.gov | IF10213 · VERSION 5 · UPDATED

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