The socio- economic conditions of the Jaffna District depend mainly on primary economic activities, agriculture, livestock and fisheries. Land ownership is governed by the traditional and tenure system. In the premium agricultural areas of Walikamam and Wadamarachchi the percentage of tenant landless cultivators are very high. The land holdings are very small. The total number of 84,416 holdings covers only an extent of 24,924 hectares, which gives an average of 0.3 hectares per allotment. Further, the smallest 73,483 allotments cover only an extent of 9,051 hectares, which gives an average holding size of about 0.12 hectares.

Since the beginning of the conflict 1983 local production and supply of food items have been decreasing drastically. Food production, except certain items, has never been and will never be sufficient to meet the local demand. Only 10% of the requirements of the rice were produced locally. 60% were brought in from the other Districts in vanni , from Trincomalee and Batticaloa. The rest had to be imported through Colombo. Vegetables and fruits were produced in Jaffna in excess and a substantial part of it is marketed to Colombo and the Vanni. The excess of seafood is also sold in the Colomdo market.50% of the milk products were products locally and 80% of the meat 50% of the milk needs were met by imports through Colombo (Milk Powder).20% of the meat comes from the Vanni.

Industrial production has collapsed completely, but the number of cottage and small-scale industries and self –employment schemes have been increasing since 1997.the service sector has always been underdeveloped, and trade is recovering slowly. The financial sector is well represented with branches of all the national danks, but operational performance does not meet the needs.