1. Workshop On National Accounts 6-9 July 2009 New Delhi - India 1 Presented by D.G.S.G. Munasinghe Deputy Director, N.M.A.K.Nawarathna, Statistician National Accounts Division Country Presentation

2. 2 The compilation of National Accounts for Sri Lanka was started in early 1950s, by the DCS with a few tables on production and expenditure accounts at current factor cost prices and constant prices. The publication was gradually expanded from 1960s onwards. Cont……. National Accounts in Sri Lanka

3. 3 The estimates in real terms of the past data series were based on the constant prices of the years as follows, 1958, 1963, 1975, 1990, 1998, and the latest as 2002. Cont……. National Accounts in Sri Lanka

4. 4 Both the CBS and the DCS Compiled the National Accounts until 2007. From 2007 onwards sole responsibility of Compiling National Accounts is vested with the DCS. Started preparation of Supply and Use Tables with the assistance of ADB. First phase of SNA93 is already completed. National Accounts in Sri Lanka

5. 5 DCS is currently having the press briefing on QNA with a fixed time table.DCS is currently having the press briefing on QNA with a fixed time table. Produces QNA in official Web, and as With hard copies.Produces QNA in official Web, and as With hard copies National Accounts in Sri Lanka

6. 6 AGRICULTURE SECTOR

7. 7 TEA Coverage:- Total Production of Green Leaves. Data sources, Valuation principles, Prices & Other indicators used:- Total production of black tea and average price of green leaves are taken from the Sri Lanka Tea Board. Using conversion factor given by the Tea Small Holding Authority, amount of black tea (Kg) is converted in to green leaves. Value of Inputs of tea growing is taken from the Agriculture Division (DCS), Quantum index is used to extrapolate base year value in to constant value.

8. 8 RUBBER Coverage:- Total Latex Production. Data sources, Valuation principles, Prices & Other indicators used:- Total rubber production and average price of latex to produce one Kg: of Rubber are taken from the Rubber Development Department. Value of Inputs of Latex (to produce one Kg: of Rubber) is taken from the Agriculture Division (DCS), Quantum index is used to extrapolate base year value in to constant value.

9. 9 COCONUTS Coverage:- Total Nuts Production. Data sources, Valuation principles, Prices & Other indicators used:- Total nuts Production and export quantity are taken from the coconut development authority. Value of Inputs to produce 1000 of nuts is taken from the Agriculture Division (DCS), to estimate the value addition of domestic use. FOB prices are taken from the Dept.of Customs to estimate the value addition of exports. Quantum index is used to extrapolate base year value in to constant value.

10. 10 MINOR EXPORT CROPS Coverage:-Production of 96 verities of crops are covered. Data sources, Valuation principles, Prices & Other indicators used:- Total Production, value of inputs and producer prices are taken from the export agriculture department. Export quantity and FOB prices are taken from the customs department to estimate the value addition of exports. Quantum index is used to extrapolate base year value in to constant value.

11. 11 PADDY Coverage:- Total Paddy Production Data sources, Valuation principles, Prices & Other indicators used:- Total Production of Paddy is taken from the Crop cutting survey done by the agriculture division of the DCS and it also gives value of inputs. Producer prices are taken from the Prices & Wages Division of the DCS. Department of Agriculture supplies Producer prices of seed paddy and cost of inputs. Quantum index is used to extrapolate base year value in to constant value.

12. 12 LIVESTOCK Coverage:-Milk, Eggs, Poultry, Beef, Mutton & Pork Production Data sources, Valuation principles, Prices & Other indicators used:- Milk and Eggs Production and also animal population are estimated annually by the agriculture division through census & surveys. Value of inputs & annual poultry production are supplied by the department of animal production & health. Producer prices are taken from the prices & wages division of the (DCS). Agriculture division (DCS) supplies average carcass weight and estimation of slaughtered animals. Quantum index is used to extrapolate base year value in to constant value.

13. 13 OTHER FOOD CROPS Coverage:- Highland crops (Production 23 Crops), Vegetables Production of (17 Vegetables) & Fruits (Production of (05 Fruits) Data sources, Valuation principles, Prices & Other indicators used:- Production is estimated by the Agriculture Division (DCS) through annual and seasonal surveys, Prices & Wages Division (DCS) supplies producer prices, Department of Agriculture gives input ratios of the production. Quantum index is used to extrapolate base year value in to constant value.

14. 14 PLANTATION DEVELOPMENT Coverage:- New Plant, Replant & Infilling of Tea, Rubber & Coconuts Plantation Data sources, Valuation principles, Prices & Other indicators used:- Cost of inputs per acre and planted extension are given by the Tea Small Holding Authority, Coconut Cultivation Board, Rubber Development Department. Minimum wage rate index is given by the Department of labor and it is used to deflate the current value addition.

15. 15 FIREWOODS & FORESTRY Coverage:- Firewood & Forestry Data sources, Valuation principles, Prices & Other indicators used:- Average price of firewood is taken from the Prices & Wages Division (DCS). Local Production of cement is taken from local producers & quantity of Imported cement is taken from the customs, Rubber Development Department supplies the rubber production, Sri Lanka Tea Board supplies total black tea production, Coconut Development Authority supplies firewood used for copra & other product of coconuts, Sri Lanka Timber Corporation gives cubic meters of logs, Sample Survey Division (DCS) gives firewood used for household through (HIES), Input ratio of firewood & intermediate inputs of Timber is given by Department of agriculture & Timber Corporation respectively Quantum index is used to extrapolate base year value in to constant value.

16. 16 FISHERIES Coverage:- Inland Fishing, Marine Fishing Data sources, Valuation principles, Prices & Other indicators used:- Fisheries productions & its Input Ratio are obtained from the Ministry of Fisheries & Aquatic Resources. Weighted average producer Price is taken from the Prices & Wages Division (DCS), FOB Prices are taken from the customs. Quantum index is used to extrapolate base year value in to constant value.

17. 17 INDUSTRY SECTOR

18. 18 MANUFACTURING Coverage:-Processing (Tea, Rubber and Coconut), Factory industry, Cottage industry Data sources, Valuation principles, Prices & Other indicators used:- Sri Lanka Tea Board, Rubber Development Department, Agriculture Division(DCS) Sample Survey Division (HIES) (DCS), Construction, Trade & Services Division (Annual Survey of Industry) (DCS), Coconut Development Authority, Customs, Board of Investment Central Bank of Sri Lanka are supplying the data. For Processing of (Tea, Rubber and Coconut), Quantum index is used to extrapolate base year value in to constant value. Compilation of Factory industry GVA mainly based on Annual Survey of Industry, WPI used to deflate current value in to constant value.

19. 19 MINING AND QUARRYING Coverage:- Gem Mining, & Other Mining Data sources, Valuation principles, Prices & Other indicators used:- Gem & National Jewelry Authority, Customs Department, Road Development Authority, Local cement producers, Department of Labor are supplying the data. Unit Price Index, Cement to Sand, Metal & lime Ratio, Minimum Wage Rate Index are used for calculation. For gem mining, unit price Index is used to deflate current value in to constant value. For Sand, Metal & lime, minimum wage rate Index is used to deflate current value in to constant value.

20. 20 ELECTRICITY, GAS AND WATER Coverage:- Electricity, Gas, Water Production Data sources, Valuation principles, Prices & Other indicators used:- Sri Lanka Electricity Board, Sri Lanka Water Board, Gas Producers, Sample Survey Division(DCS) (HIES) are supplying the data. Quantum Index, Intermediate Inputs Labor Force Increase, Colombo Consumer’s Price Index are used for calculation. Electricity & Gas Quantum index is used to extrapolate current value in to constant value. Current Value addition of Water production is deflated by the Colombo Consumer’s Price Index to derive constant value add.

21. 21 CONSTRUCTION Coverage:- Housing, Other building, Roads and Bridges, Reclamation and Irrigation, & Other Construction Data sources, Valuation principles, Prices & Other indicators used:- Contraction, Trade & Services Division (DCS), Local Cement Producers, Sri Lanka Customs, ICTAD, Housing Development Authority, Central Bank are supplying the data. ICTAD Indicators, Cost Index, Material Index, Construction Price Indicators are used. Survey Based Indirect Method is used to estimate the inputs and output value, Deflator method is used to estimate the constant value.

22. 22 SERVICES SECTOR

23. 23 WHOLESALE AND RETAIL TRADE Coverage:-Import trade, Export trade, Domestic trade Data sources, Valuation principles, Prices & Other indicators used:- Sri Lanka Customs, Prices & Wages Division (DCS), Agriculture Division (DCS), Sri Lanka Tourist Board, Central Bank of Sri Lanka, Department of Inland Revenue are supplying the data. CIF Prices, FBO Prices, Unit Prices of Imports, Unit Prices of Exports, Agriculture Wage Rate Index, Volume Index, Prices Index are used for calculation. Producer prices & Retail prices are taken from the prices & wages division of the (DCS). Price index is used to deflect current value in to constant value.

24. 24 TRANSPORT AND COMMUNICATION Coverage:- Railway Transport, Passenger Transport buses and Lorries, Cargo handling, Ports and Civil aviation, Post and telecommunication Data sources, Valuation principles, Prices & Other indicators used:- Sri Lanka Railway, Department of Motor Traffic, Sri Lanka Transport Board, Central Bank of Sri Lanka, Sri Lanka Airline, Mihin Lanka, Sri Lanka Shipping Corporation, Commission of Telecommunication, Media Institutions, Telecommunication Suppliers Passengers Transport Index, Goods Transport Index, Number of Vehicles Index, Income Index are use for calculations. Volume Extrapolation Method and Deflator Method are used to calculate constant value.

25. 25 BANKING, INSURANCE AND REAL ESTATE ETC. Coverage:- Banking, insurance and real estate etc. Data sources, Valuation principles, Prices & Other indicators used:- Licensed Commercial Bank 23 Licensed Special Bank 14 Registered financial Institution 32 Insurance Corporations Value addition is calculated through factor income method (both current & constant).

26. 26 OWNERSHIP OF DWELLINGS Coverage:- House rents, maintenance & repair Data sources, Valuation principles, Prices & Other indicators used:- Sample Survey Division (Household Income & Expenditure Survey) (DCS), Industry Division (Building statistics survey) Gross output is derived from estimated number of housing units based on the rents. Input value is derived using a percentage taken from the HIES which considers expenditure incurred to maintenance & repair. Household is used as a quantum index to derived Constant value add (Volume Extrapolation method)

27. 27 PRIVET SERVICES Coverage:- Law, Education, Health, Beauty culture & other privet services. Data sources, Valuation principles, Prices & Other indicators used:- Gross output is derived using the population growth, price index & wage rate index. Value of output is calculated using the percentage of VAT paid to the department of inland revenue & estimate taken from the HIES. Deflator method is used to estimate the constant value addition.

28. 28 GOVERNMENT SERVICES Coverage:- Central Government, Provincial Council & Local Government. Data sources, Valuation principles, Prices & Other indicators used:- Government Budget, Provincial Council Expenditure, defense All payment made to the public servants including servicemen. Number of public servants are used as quantum index to derived the constant value addition

29. 29 CHALLENGES/DIFFICULTIES Produce QNA within 2 & half months period is a tedious task. Informal Agriculture sector-difficult to get the estimates Lack of data in Informal sector, cottage industries, and other trade and services sectors. Absence of trade and services surveys. Difficulties faced with the estimates currently produced by the construction surveys. Land fragmentations for housing and other building badly affect in estimating nut production of Coconut. Less responses from industrialists. Lack of trained manpower for National Accounts

30. 30 TECHNICAL ASSISTANCE REQUIRED Seek Consultancies for Rebasing and linking practices On going training program on SNA93/2008(foreign) Funding facility for SNA training with more practical oriented (local only).

31. 31 FURURE PLANS Initiate surveys to capture lacking set of data in the arias of Informal sector (agriculture & cottage industries) Trade & services sector. Strengthen the staff of National Accounts Division following ways. Giving more training to the staff. Empower the National Accounts staff to withstand the external pressure (at the press, criticisms, debates and awareness programms on compilation National Accounts methodologies.

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