Has Sri Lanka’s prosperity really increased?

February, 24, 2014

It is a normal human tendency to shout about the losses incurred but keep quite whenever profits are gained. The story that most relate in this country is how they continue to live amidst great hardships while managing their daily expenses. However, while publishing its latest data, the Sri Lanka Central Bank has stated Sri Lanka’s prosperity index has shown an increase.

What is significant here is the Central Bank having stated that Sri Lanka’s prosperity index has shown a continued increase since 2008. According to the Central Bank’s prosperity index, it states that Sri Lanka’s prosperity has increased by 6.8 percent in 2012. That is, while this index had been 62.5 percent, it had been 66.8 in 2012.

This index was introduced by the Central Bank in 2008 to measure Sri Lanka’s prosperity index. This is a multi-dimensional index. This comprises three sections – livelihoods, wellbeing and socio-economic infrastructures.

Till 2011 this index was measured regionally and nationally while considering 26 variables. However, 16 more variables were added to these in 2012. Accordingly, by now there are 42 variables being considered to measure this index.

The Central Bank says that these better portray the state of the country’s economy, business environment, health, education and economic infrastructure facilities.

The Central Bank has stated that Sri Lanka’s prosperity has increased since the sectors of socio-economic infrastructure facilities, economic and business environment and the wellbeing of the people have shown continuous development in this index.

How Sri Lanka’s prosperity increased in 2011

While Sri Lanka’s socio-economic infrastructure facilities which were 6.7 percent in 2011 had developed to 8.2 percent in 2012, the economic and business environment had developed by 5.3 percent.

The Sri Lanka Central Bank further adds that the wellbeing of the people in this country has developed up to 6.9 percent.