Lanka means "resplendent" (from the Pali "alankara"). Stone-age implements found on the island date back at least ten millennia, while evidence is available that the domestication of plants may have taken place around 15,000 B.C. Given Sri Lanka’s central location on the trade routes of the ancient world and the attraction then of her "products", pearls, timber, gems and ivory, and later spices, the island had become a center of East-West commerce well before the Christian era. The direct influence of European maritime powers was felt beginning from the 16th century with the arrival of the Portugues, Dutch and later British. Sri Lanka gained independence from the British on 4 February 1948.

The population of Sri Lanka (1998 estimate) is 18.77 million. The country is a multi-ethnic nation. The Sinhalese, of Indo-Aryan origin, comprise 74 percent of the population; the Sri Lankan Tamils, of Dravidian origin, who migrated to the island thereafter: 12.6 percent; the Indian Tamils, descendants of migrant workers from South India recruited in the last century by the British: 5.5 percent; the Moors, descendants from Arab traders who arrived in the island from about the 12th century AD: 7.1 percent; and others, who include Burghers, descendants of the Dutch and Portuguese: 0.8 percent. Sinhalese and Tamil are official languages while English is the national language. Four major religions are freely practiced in Sri Lanka. Buddhists account for 69.3 percent of the population, Hindus for 15.5 percent, Christians for 7.6 percent and Muslims for 7.5 percent.

At the time of independence, Sri Lanka adopted a Westminster system of Parliamentary government with a House of Representatives, a Senate and a Cabinet headed by a Prime Minister. The British monarch was retained as constitutional head of state, and was represented in the Island by a Governor-General. In 1972, a Republican Constitution was adopted with a single legislature (the National State Assembly) and a constitutional President thus formally severing links with the British Crown. Following the amendment of Constitution in 1978, an Executive Presidential system of government prevails.

The President of Sri Lanka is both the Head of State and Head of Government. The President is directly elected by the people for a term of six years. The supreme legislative body is a unicameral parliament consisting of 225 members elected by a system of proportional representation. A multi-party system prevails and many smaller parties are allied to either the government or the opposition group. The leader of the majority party in the parliament is elected as the Prime Minister.

Ninety percent of the economy of the country at independence depended on the export of the three plantation crops of tea, rubber and coconut. Since the late 1970s, the economy has been progressively liberalized. Industrial policy has shifted from import substitution to export-oriented production. The service center now accounts for 52% in the sectoral composition of the GDP; the manufacturing sector for 16.5%; agriculture for 21.1%; construction for 7.6%; and mining for 1.9%.

Colombo is the largest Tea Auction Centre in the world since London auctions ceased to function in June 1998. Other exports include textiles and garments, coconut products, spices, cocoa, coffee, essential oils, gems, fishery products, rubber, machinery, footware and leather products and petroleum by-products. Major imports include rice, wheat and sugar, fertilizer, crude oil and investment goods such as raw materials, building materials, transport equipment and machinery.