ECONOMIC GROWTH IN SRILANKA

What is Economic Growth

Increase in a country's productive capacity, as measured by comparing gross national
product (GNP) in a year with the GNP in the previous year.
Increase in the capital stock, advances in technology, and improvement in the quality and level
of literacy are considered to be the principal causes of economic growth. In recent years, the idea
of sustainable development has brought in additional factors such as environmentally
sound processes that must be taken into account in growing an economy.

Sri Lanka GDP

The Gross Domestic Product (GDP) in Sri Lanka was worth 78.82 billion US dollars in 2014.
The GDP value of Sri Lanka represents 0.13 percent of the world economy. GDP in Sri Lanka
averaged 15.05 USD Billion from 1960 until 2014, reaching an all time high of 78.82 USD
Billion in 2014 and a record low of 1.42 USD Billion in 1960. GDP in Sri Lanka is reported by
the World Bank

Why do we measure economic growth?

Following Adam smith, it is essential to note whether wealth of the nation is rising or
falling( though we do not care to measure the total wealth) ie whether we are doing our jobs
honestly in line with capitalist economics or not.
western powers shun a country which does not accept their standards and hence all publish GDP
etc. data, however faulty, to please the economic masters.
See one reply here !!!
more GDP means better lifestyle.....that's what everyone cares about now-a-days

Measure Economic Growth

Measuring Economic Growth We use real GDP to calculate the economic growth rate. The economic
growth rate is the percentage change in the quantity of goods and services produced from one year to the

ECONOMIC GROWTH IN SRILANKA

Measure Economic Growth

Measuring Economic Growth We use real GDP to calculate the economic growth rate. The
economic growth rate is the percentage change in the quantity of goods and services produced
from one year to the next. We measure economic growth so we can make: Economic welfare
comparisons International welfare comparisons Business cycle forecasts Using the exchange
rate to compare GDP in one country with GDP in another country is problematic because prices
of particular products in one country may be much less or much more than in the other country.
Using the exchange rate to value Chinese GDP in dollars leads to an estimate that U.S. real GDP
per person was 69 times Chinese real GDP per person.

How to measure the economic growth of a country?

Economic growth is now measured by increases in a country's per capita net national product.
Economists often do this not because they are convinced of the theoretical and statistical
accuracy of these figures as indicators of development, but rather because there is no other
superior readily available alternative.
The major limitations of the per capita national income indicator as a measure of welfare are the
following and in no case should be overlooked by a serious growth analyst:
The per capita income figure indicates nothing about the types of goods and services produced in
a country. It also fails to measure the amount of welfare which people derive from the use of
these goods and services.
Often an increase in per capita national income involves considerable social cost in the form of
environmental pollution, overcrowding in cities or overwork under tremendous stress.
To use India as an illustration, why should we include in the national income money spent on bus
services in our major metropolitan cities, as well as the money spent on automobiles which are
being usually used by the people to get to and from work?
And why should we include the money spent on cleaning the environmental pollution caused by
the industrial development? Some economists now rightly suggest that all such expenditures are
to be treated as costs and should be subtracted from the national income.
Many goods and services do not pass through the market and are thus not included in the
national income estimates. In no country, for example, unpaid housework and self-repairs are
considered as production.
However, in less developed countries non-inclusion of goods and services which do not pass
through the market distorts national income estimates far more than in industrialised developed
countries because of their greater relative importance in the former.

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Present Economic Growth in Srilanka

Sri Lanka's economic growth steady at 6.4% in 2015

Sri Lanka's economy grew at an annual rate of 6.4 percent during the first quarter of this year,
same rate as the last quarter of 2014, the Census and Statistics Department said on
Monday.According to a Department statement, the The total economic output of Sri Lanka as
measured by Gross Domestic Product (GDP) for the first three months of 2015 reportedly
increased up to Rs. 912.534 billion. GDP reported for the first quarter of 2014 was Rs. 857.497
billion, resulting a positive growth rate of 6.4 percent for the first quarter 2015.The three main
pillars of the economy, Agriculture, Industries and Services sectors contributed 10.9 percent,
32.7 percent and 56.3 percent respectively to the GDP in the first quarter of 2015.The industrial
sector recorded a growth rate of 6.5 percent year-on-year and the Service sector which
corresponds to highest share to the GDP recorded a 7.5 percent increase in the first quarter of
2015.The Agriculture sector grew only 0.7 percent.The Colombo Consumer Price Index (CCPI)
(2006/2007 = 100) increased to 180.1 in the first quarter of 2015, from 177.5 recorded in the first
quarter of 2014, indicating a 1.4 percent inflation rate.Sri Lanka's economy slowed down in the
fourth

quarter

ECONOMIC GROWTH IN SRILANKA

of 2014 significantly from the growth in previous three months and for the year and recorded a
growth rate of 7.4%. The Central Bank expects the economy to grow at 7.0 percent this year.

Sri Lanka aims to raise economic growth rate to 10% from 6%

- President
One of the main objectives of the new Government is to improve the economic growth
rate of Sri Lanka to 10% from the present rate of 6%, said President Maithripala Sirisena.
He made these observations when he met with Annette Dixon, World Bank's Vice
President for the South Asia Region at the Presidential Secretariat, on Friday (18).
The President commended the assistance given by the World Bank for the development
works of Sri Lanka and he also said that he will expect the fullest cooperation of World
Bank for the future development works of the new Government too, President's Media
Unit reported.
President Maithripala Sirisena further said that as a new Government they will expect to
implement many new changes to the country and priority will be given to the elimination
of poverty and to reduce income inequality.
President Sirisena requested the World Bank Vice President to provide assistance in
getting new technological equipment to curb illicit drugs entering the country.
The President also said that the assistance of World Bank needed to the programs which
are aimed at uplifting the agricultural sector while strengthening the local food production
program.
The new Government has many new plans to attract foreign investments into the country
by expanding the facilities for the foreign investments; the President further said and
added that the Government expects to expand the country's export market through these
initiatives.
The President pointed out the importance of attracting high-end investors into the country
for the development of the country and he said that by making required changes to the tax
system of the country will pave the way to attract more foreign investments into the
country.
The World Bank Vice President said that the World Bank will provide their fullest
cooperation for the future development plans of the new Government.
She extended her congratulations to the President for forming a strong Government
following the General Election and she further said that it is very important for the future
development goals of Sri Lanka.
Ms Annette Dixon further said that the World Bank wishes to jointly launch their projects
with the Government development projects.
"According to one of the World Bank surveys Sri Lanka is a country, which is more
suitable for turn into a production center related to agricultural products", she said and

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added that World Bank will provide their distinctive assistance for the upliftment of the
agricultural sector of Sri Lanka.
A delegation including Franoise Clottes- World Bank's Country director for Sri Lanka
and the Maldives, participated at the event