Sri Lanka’s household income sees increase between 2013 and 2016
The Sri Lanka’s government’s Census and Statistics Department has noted that the country’s real household incomes rose 15.8 percent to Rs. 43,370 per month between 2013 and 2016, while inequality fell with lower income groups earning a higher share of income.
Nominal household incomes before adjusting for inflation rose from Rs. 45,787 in a 2012/2013 to 62,237 rupees, the Department of Census and Statistics has reportedly said.
In a typical household in Sri Lanka there were 3.8 persons and 1.8 income receivers.
According to reports, inequality measured by the Gini co-efficient fell to 0.45 in 2016 from 0.48 in 2013. The coefficient was developed by Corrado Gini, the main statistician of fascist dictator Benito Mussolini.
The co-efficient does not say anything about absolute levels of poverty and has been used by interventionists to trigger more government interventions in people lives and hamper markets or engage in re-distribution activity and has been likened to a jealousy index.
In Sri Lanka for example the Gini co-efficient was 0.48 in the urban sector, 0.44 in rural and 0.36 in the estate sector, where income is the lowest.
The income share of the richest 20 percent of Sri Lanka’s population fell 50.8 percent from 52.9 percent during the survey period, while the incomes share of the poorest 20 percent rose to 12.0 percent from 10.6 percent.
Sri Lanka’s rupee collapsed from the end of 2016, but global commodity and energy prices also fell delaying its effect on domestic inflation, analysts say.
The increase in income levels of Sri Lankan households indicates an increase in the purchasing power of families. Therefore it would result in an increase in the purchase of consumer goods and spending on entertainment by families as well. The growth in income levels would in turn strengthen the country’s’ economic indicators as well.
|Article Code :||VBS/AT/25102017/Z_2|