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SL Prosperity Index rises

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Improvements in ‘Economy and Business Climate’
Improvements in ‘Well-being of the People’
Improvements in ‘Socio-Economic Infrastructure’

Sri Lanka Prosperity Index (SLPI), recorded an index value of 0.796 in 2021 with a slight increase compared to 0.764 recorded in 2020 when the economy was severely affected by the COVID-19 pandemic.

The marginal increases in the ‘Economy and Business Climate’, ‘Well-being of the People’ and ‘Socio-Economic Infrastructure’ sub-indices have contributed to this slight increment in SLPI.

The overall increase in the Economy and Business Climate sub-index in 2021 was driven by increases in Gross Domestic Product (GDP) per capita in nominal terms, employment, wages and industrial density compared to 2020. However, relatively high inflation in 2021 compared to the previous year had detrimental effects on the sub-index.

The marginal increase observed in the Well-being of the People sub-index was predominately due to the facilitation of education and improvements in people’s wealth in 2021 compared to 2020.

Expansions in electricity supply and telephone facilities, as well as road developments during the year, have moderated the negative impact on the Socio-Economic Infrastructure sub-index caused by the decline in usage of public transportation facilities, reduced availability of clean and safe drinking water and the higher number of crimes reported during 2021.

Among the nine provinces, the Western province has secured the highest value for the prosperity index in 2021, while Southern and North Western provinces were ranked at the second and third positions, respectively. When considering the change in the provincial prosperity index compared to the previous year, the North Western province recorded the highest increase followed by the Southern and Western provinces. Meanwhile, Uva, Sabaragamuwa and North Central provinces recorded declines in the provincial prosperity index.

North Western province recorded the highest improvement within the sub-index, mainly due to increments in per capita provincial GDP, employment and informal sector wages. Improvements in the sub-index were recorded in Sabaragamuwa, Western and Southern provinces as well, amidst the relatively volatile and high inflation reported in 2021 compared to 2020 in all provinces.

The declines of the sub-index in other provinces were mainly caused by deteriorations in employment aspects in 2021.

The sub-index improved in all provinces, predominantly due to increased health expenditure, enhanced facilitation for education, increased availability of supermarkets and the low number of reported respiratory diseases which may have resulted from precautions taken against COVID-19.

The highest improvement within the sub-index was reported from the Eastern province while Sabaragamuwa province reported the lowest increase. Socio-Economic Infrastructure Sub-Index Six provinces have recorded marginal increases in the sub-index where the largest increase was reported from the Western province.

The improvements made to the infrastructure such as electricity, telephone and road developments were the key reasons for the increases in the sub-index.

Monday, January 2, 2023 – 01:00











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