The mixed economy of Sri Lanka was worth $84 billion by nominal gross domestic product (GDP) in 2019 and $296.959 billion by purchasing power parity (PPP). The country had experienced an annual growth of 6.4 percent from 2003 to 2012, well above its regional peers. This growth was driven by the growth of non-tradable sectors, which the World Bank warned to be both unsustainable and unequitable. Growth has slowed since then. In 2019 with an income per capita of 13,620 PPP Dollars or 3,852 (2019) nominal US dollars, Sri Lanka was re-classified as a lower middle income nation with the population around 22 million (2021) by the World Bank from a previous upper middle income status.

The Sri Lankan Civil War was a civil war fought in Sri Lanka from 1983 to 2009. Beginning on 23 July 1983, it was an intermittent insurgency against the government by the Liberation Tigers of Tamil Eelam led by Velupillai Prabhakaran. The LTTE fought to create an independent Tamil state called Tamil Eelam in the north-east of the island, due to the continuous discrimination and violent persecution against Sri Lankan Tamils by the Sinhalese-dominated Sri Lanka government.