Sri Lanka ranks highly in the South Asian region in terms of human development indicators, with its high literacy rate of 91% placing it on par with those of South east Asia. Its national health indicators are comparable with those of the developed world. This is underscored by the relatively higher ranking the country has received in terms of GDP p.c. (PPP), which at US$3,530 is higher than that of India (US$ 2,358), Pakistan (US$ 1,928) & Bangladesh (US$ 1,602).

Sri Lanka was placed 89th (Medium Human Development Category) out of 173 countries in the Human Development Indicators constructed in 2002, ahead of China (96th), Vietnam (109th), Indonesia (110th), India (124th), Pakistan (138th) and Bangladesh (145th). The Human Development Index (HDI) measures a country's achievements in three areas of human development: longevity ( life expectancy at birth), knowledge (adult literacy & combined primary, secondary & tertiary gross enrolment ratio) & a decent standard of living ( GDP per capita).

Human Development Index of some selected countries: