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Economic Performance of Sri Lanka Trends of Economic Growth Rate of Sri Lanka 1.

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Presentation on theme: "Economic Performance of Sri Lanka Trends of Economic Growth Rate of Sri Lanka 1."— Presentation transcript:

1 Economic Performance of Sri Lanka Trends of Economic Growth Rate of Sri Lanka 1

2 Gross domestic Product(GDP) Gross Domestic Product(GDP) is the monetary value of the value added generated in the production of goods and services inside the country diring a year. 2

3 Economic Growth rate Economic growth rate can be defined as a percentage increase of real Gross Domestic Product(GDP). 3

4 National Accounting of Sri Lanka 4

5 Cover all economic activities Data are collected from about 250 institutions (as a sample) so as to represent all above economic activities Use 1993 SNA guidelines in the estimation process Data are analyzed by using a computer system 5

6 National Accounting of Sri Lanka Five statisticians and fifteen statistical officers are engaged in the compilation process of national accounts estimates Sri Lanka is one of countries which collects quarterly data and compile quarterly national accounts estimates Quarterly national accounts estimates are derived by using the indicator method in other countries 6

7 National Accounting of Sri Lanka Advance Data Release Calendar is published in the department web site. GDP estimates are released during the 75 days time lag of each quarter Estimation procedure is consisted by several rounds and press notes prepared in these stages should not be considered as final one until Director General of DCS release the final press note to the web 7

8 National Accounting of Sri Lanka Estimation procedure – Data collection starts in the first week of next quarter – Estimation procedure is supervised by the statisticians and estimates can be revised – Separate Internal discussions for different economic activities – Two discussions of statisticians – Two discussions with director of National Accounts Division – A discussion with Additional Director General – Final discussion with Director General 8

9 National Accounting of Sri Lanka Director General is the authorized person to release all indicators produced by the department The previous draft documents prepared in different stages should not be considered as final report 9

10 DCS started national accounting in 1948 and continued Both institutions, DCS and Central Bank of Sri Lanka compiled national accounts estimates up to Sole responsibility of national accounting was given to the DCS from Responsibility of National Accounting for Sri Lanka 10

11  International Standard of Industrial Classification(ISIC) is used  Agriculture Forestry and Fishing  Industry  Services Economic activities of Sri Lankan economy 11

12 Agriculture, forestry and Fishing agriculture Livestock Forestry and Fishing Industry Mining and quarrying Manufacturing Electricity, Gas and Water Construction Services Wholesale and retail trade Hotels and restaurant transport and communication Banking Insurance and Real estate Ownership of Dwellings Government services Private services Main economic activities of Sri Lankan economy 12

13 Quarterly economic growth provisional 13

14 Quarterly economic growth rates In the year 2009 economic growth rate has gone down to 3.5 percent level mainly due to world economic slowdown After the end of the war economic growth rate exceeds 8.0 percent (2010 and 2011) It fluctuates around 7 percent in recent quarters 14

15 Agriculture 15

16 Trends of Paddy production Million Busals Source- Department of Census and Statistics 16

17 Paddy production in Northern and Eastern provinces Million Busals Source- Department of Census and Statistics 17

18 Trends of Paddy production Paddy production has increased from 2005 – Harvested area has increased from 1.4 Acre Mn to 1.8 Acre Mn – Average yield has increased from 77 Busals to 90 busals Government intervention – Increase paddy prices – Fertilizer subsidy – Expansion of irrigation schemes 18

19 Trends of Tea production ‍ source- ‍Srilanka Tea estimated figure. 19

20 Trends of Tea production A positive trend of tea production from 2005 Although demand for tea has decreased due to world economic slowdown in the year 2009, it recoverd from

21 Maize production. Source- Department of Census and Statistics 21

22 Source- Department of Census and Statistics Livestock and animal production Department 22

23 Source- Department of Census and Statistics 23

24 Source- Department of Census and Statistics 24

25 Production of Milk Milk production in Northern and Eastern provinces increased after the end of the war. 25

26 Industry 26

27 Source :-Sri Lanka Customs “Industrial Export Earnings” to Total Export Earnings is more than 75%. “Textile and Garments” to Total Export Earnings is more than 50%.

28 Source:-Ceylon Electricity Board

29 Source:- Water Supply & Drainage Board

30 Source:- Litro Gas Company Ltd Laugfs Gas PLC

31 Construction, Manufacturing and Fixed Capital formation 31

32 Imports of Cement Source: Sri Lanka Customs 32

33 Annual Cement availability 33

34 Directs and indirect effects of increase in cement supply to the economy To increase output of construction sector To expand other cement related industries To develop infrastructure To increase capital formation or gross investment 34

35 Services 35

36 Government sector 36

37 Government Expenditure Source: Government Budget, Department of estate accounts 37

38 Government Expenditure Both current and capital expenditure increased continuously GDP increases directly when government expenditure increases according to Keynesian identity (Y = C + I + G + X – M), G Purchasing power of Household increses due to increase of GDP Investment and capital stock increase due to increase of capital expenditure Increased capital stock lead to increase future production Y=GDP, C=Private Consumption, I=Investment, G=Government Expenditure, X-M=net exports 38

39 Hotels & restaurant and Tourism industry 39

40 Tourist arrivals Source: Sri Lanka Tourism Development Authority 40

41 Effects of increase of tourist arrivals Increase of output of hotels and restaurant sector Expansion of services activities such as transport and telecommunication Even though tourist arrivals increased, Income of star hotels remains same or can be decreased. This is mainly due to tendency to use unregistered accommodation and other services. 41

42 Transport 42

43 Number of registered Cars and Three wheelers Source- Department of motor traffic 43

44 implications of increase of registered vehicles Increase of transport services Expansion of service sector Increase house hold luxury consumption 44

45 Export and Import 45

46 Increased export income since 2006, shows us that the production of related goods has also increased during the last few years Export income of the year 2009 has gone down as a result of world economic slowdown Exports Source- Sri Lanka Customs 46

47 Import of intermediate goods and investment goods has increased than consumer goods from 2006 As intermediate and investment goods are used in the production of goods and services it was a favorable factor to the economic growth of the country Imports Source- Sri Lanka Customs 47

48 VAT income from wholesale and Retail trade has increased repidly and it shows the expansion of trade activities and consumption VAT income from wholesale and Retail trade activities Source- Department of Inland revenue Rs. M n 48

49 Turnover of Wholesale and Retail trade sector Source- Department of Census and Statistics 49

50 Profit and salaries & wages of financial institutions has increased continuously from 2005 by showing increased demand for monetary intermediation VAT income from wholesale and Retail trade activities 50


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