From the earliest days of the ancient Silk Road trade route to today's so-called maritime Silk Road, Sri Lanka's geographical location and deep harbours have made it of strategic importance. Even in the Anuradhapura period, it was already known to both Far Easterners and Europeans as the site of a major trading hub. Sri Lanka's trade in luxury goods and spices attracted traders from all over the world, which has led to the country's diverse population.

Several types of endemism in the Western Ghats of India and Sri Lanka make them among the top 18 biodiversity hotspots on the planet. There are now 34 biodiversity hotspots. Among Asian countries, Sri Lanka has the highest biodiversity per unit area for flowering plants and all vertebrate groups (except birds). There are remarkably high percentages of endemic species among its flora and fauna, 27% of its 3,210 flowering plants and 22% of its mammals.