This paper indicates a study of rapid Korean economic growth since 1970‐2010 on Sri Lankan economy. In early history (1950s and middle of 1960s), real GDP per capita was more similar both Korea and Sri Lanka. But later the comparison of GDP per capita resulted a clear difference. South Korea was a miracle in considering its economic growth. Therefore the main purpose of this research is to indentify, how Korea able to achieve and Sri Lanka unable to achieve such a growth. This paper shows a comparative analysis of both Korean and Sri Lankan economies specially focusing on GDP, trade and sectoral behaviors. The secondary purpose of this study is to identify Korean economy, behavior of its economy and differential strategies used to achieve economic catch‐up during the consisting period. Moreover this paper shows some suggestions on Sri Lankan economy, to make more dynamic economy and achieve sustainable economic growth. According to this research analysis mainly focused on export industries. Especial attention pays on economic diversification and upgrading related industries.