Feb 20, Colombo: Sri Lanka is steadily becoming more prosperous over the last five years, according to an indicator introduced by the Central Bank to assess the overall status of prosperity in the country as a whole and in each of its provinces.
The Sri Lanka Prosperity Index (SLPI) compiled by the Central Bank rose by 6.8 percent to 66.8 in 2012, from 62.5 in 2011 reflecting economic and social developments in the country, the Central Bank said in a report released Thursday.
The SLPI, introduced by the Central Bank in 2008 reflects the economic and social developments in the country and the provinces on an annual basis.
The SLPI consists of three sub-indices, namely the Economy and Business Climate, the Well-Being of the People and the Socio-Economic Infrastructure.
The Prosperity Index increased during 2012, with an improvement in all three sub-indices. The most marked improvement was observed in the Socio-Economic Infrastructure sub-index, which rose by 8.2 percent in 2012 from 6.7 percent in 2011.
The Economy and Business Climate sub-index increased by 5.3 percent, while the Well-Being of the People sub-index increased by 6.9 percent in 2012.
The SLPI has shown a steady incline from 2008 onwards with an improvement in all three sub-indices.
According to the Central Bank, the Prosperity Index enables national policy makers, provincial authorities, and business and community stakeholders to measure the prosperity of provinces in a more holistic manner.
The index could also be used to identify strengths and weaknesses of provinces and to formulate policies for attaining higher standards and to reduce regional disparities leading to balanced growth in the country, the Central Bank said in its report.