Although
traditionally agriculture has played a significant role in
Sri Lanka's economic development, the country's dependence
on this sector has gradually been declining. In 1977 agriculture
accounted for 32% of GDP while in 2002 it constituted only
20% of GDP. This drop has been due to the diversification
of the economy, the consequent rise in manufacturing and services,
lower prices for commodities and lower productivity. Under
a privatisation programme that commenced in 1995, the private
sector has started to play a larger role in the plantation
sector, which consists of tea, rubber and coconut.
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The non-plantation sector, which includes vegetables, subsidiary
food crops and minor export crops, has also been developing.
This sector is gradually moving away from subsistence production
to high value-added commercial production. However, as the
sector becomes more commercialised it is imperative that the
necessary infrastructure in terms of efficient distribution,
marketing and information systems are developed and put in
place.
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