Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lankan economist says country yet to show signs of a high performing economy
Sun, Mar 16, 2014, 07:08 pm SL Time, ColomboPage News Desk, Sri Lanka.

Mar 16, Colombo: A senior economist in Sri Lanka has said the country has not yet reached the position of a high performing economy following the end of the war.

Professor of Economics at the Colombo University Sirimal Abeyratna has told a weekly English newspaper that Sri Lanka therefore cannot sustain 8-10 percent rate of average growth unless it expands its capacity level, and not the capacity utilization level.

Referring to an International Monetary Fund (IMF) Working Paper titled "Estimating Sri Lanka's Potential Output" which said that "Sri Lanka's potential output growth appears to be around 6¾ (6.7) per cent per year", Professor Abeyratna has said the study based on a quantitative analysis has confirmed the actual post-war growth outcome of Sri Lanka.

In the IMF study the authors presented various techniques to estimate Sri Lanka's potential output and output gap, including statistical and model-based approaches.

The model-based approaches allowed potential output estimates to incorporate information contained in observable data series including inflation, actual output, unemployment, and capacity utilization.

The estimation results suggested that Sri Lanka's potential output (GDP growth) has risen slightly in the last few years.

Dr. Abeyratna explained that the basic finding of the IMF paper is that Sri Lanka's potential output, which has slightly increased after 2009, remains at 6.7 percent per year.

Sri Lanka's actual GDP growth would remain fluctuating around this figure, as it has been so during the past decade he said adding that during 2002-2012, it has grown only at 6.4 percent per year.

The IMF study concluded that Sri Lanka's economy was operating slightly above potential in 2012 and if macroeconomic stability is to be maintained, policies should be geared toward allowing a period of below-potential economic growth over the near term to reduce excess demand.

ColomboPage - Recent 10 Stories
Sri Lankan President hopes the Deepawali festivities will add to the spirit of reconciliation
-- [25 minutes ago]
Sri Lanka business chamber to hold post budget seminar
-- [46 minutes ago]
Human-elephant conflict in Sri Lanka claims lives of over 60 people and 250 elephants annually
-- [58 minutes ago]
Sri Lanka monk party leaders discuss reform proposals with the President
-- [1 hour and 31 minutes ago]
Defense Ministry to conduct survey on lost properties of Sri Lankans in the North
-- [2 hours ago]
Doubts raised on Pope's visit to Sri Lanka amid snap presidential polls
Opposition MPs say election materials are being prepared in Sri Lanka Port Authority Defense Training School
Sri Lanka to appeal to Europe Court of Justice on lower court ruling to lift sanctions on LTTE
Browns Hotels and Resorts of Sri Lanka to develop four-star hotel in Maldives
India to supply two naval offshore patrol vessels to Sri Lanka - report

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.