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

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.

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

National Accounting of Sri Lanka

National Accounting of Sri Lanka 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

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

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

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

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

Responsibility of National Accounting for Sri Lanka DCS started national accounting in 1948 and continued Both institutions, DCS and Central Bank of Sri Lanka compiled national accounts estimates up to 2007. Sole responsibility of national accounting was given to the DCS from 2007.

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

Main economic activities of Sri Lankan economy 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 ප්transport and communication Banking Insurance and Real estate Ownership of Dwellings Government services Private services

Quarterly economic growth rates @ provisional

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

Agriculture

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

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

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

Trends of Tea production මෙට්‍රක් ටොන් දහස් වර්ෂය source- ශ්‍රSrilanka Tea Board @ estimated figure.

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 2010

Maize production මෙ.ටො. දහස් Source- Department of Census and Statistics

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

Source- Department of Census and Statistics වර්ෂය Source- Department of Census and Statistics

Source- Department of Census and Statistics වර්ෂය Source- Department of Census and Statistics

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

Industry

“Textile and Garments” to Total Export Earnings is more than 50%. 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%.

Source:-Ceylon Electricity Board

Source:- Water Supply & Drainage Board

Source:- Litro Gas Company Ltd Laugfs Gas PLC

Construction, Manufacturing and Fixed Capital formation

Imports of Cement Source: Sri Lanka Customs

Annual Cement availability

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

Services

Government sector

Government Expenditure Source: Government Budget, Department of estate accounts

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

Hotels & restaurant and Tourism industry

Tourist arrivals Source: Sri Lanka Tourism Development Authority

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.

Transport

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

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

Export and Import

Exports Source- Sri Lanka Customs 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

Imports Source- Sri Lanka Customs 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

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

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

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