Sri Lanka’s Central Bank notes increase in country’s Prosperity Index between 2017 and 2018
The Central Bank of Sri Lanka has reportedly noted that the Sri Lanka Prosperity Index (SLPI) that measures the level of prosperity of the country has increased to 0.783 in 2018 from 0.548 recorded in 2017.
SLPI is a composite indicator compiled by the Statistics Department of the Central Bank of Sri Lanka and comprises three sub-indices measured using 43 variables representing different aspects of prosperity.
The Central Bank has stated that all three sub-indices of SLPI, namely ‘Economy and Business Climate’, ‘Well-being of the People’ and ‘Socio-Economic Infrastructure’ have contributed to the index increase.
Economy and Business Climate sub-index improved mainly due to price stability and increase in informal sector wages during 2018.
Major improvements have been recorded in the aspects of health facilitation, quality of education, wealth of people and purity of the environment in the sub-index of Well-being of the People.
Socio-Economic Infrastructure sub-index has also recorded a slight increase during 2018 mainly due to the improvements in availability of electricity, transportation, and Information and Communication Technology (ICT) facilities and pipe borne water quality.
Meanwhile, the provincial prosperity indices, which were compiled to measure the level of prosperity across provinces, have recorded an increase in all nine provinces.
The Western Province is leading the list with the highest values of provincial prosperity index and its sub-indices.
The highest increase of the provincial prosperity index has been recorded from the Sabaragamuwa Province mainly due to improvements within its Economy and Business Climate sub-index driven by price stability and increase in informal sector wages.
OSL take:
The increase recorded by the country’s Prosperity Index is indicative of the strength and growth of Sri Lanka’s economy. It also indicates economic expansion. All these are clear indication of the growing business potential in Sri Lanka’s economy. The island’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/20191119/Z_4 |