Sri Lanka Prosperity Index measurement eases in 2019
View(s):The Sri Lanka Prosperity Index (SLPI) marginally declined to 0.802 in 2019 compared to 0.811 in 2018, with declines in the ‘Economy and Business Climate’ and ‘Socio-Economic Infrastructure’ sub-indices. The ‘Well-being of the People’ sub-index however improved during the year, the Central Bank said in a media release on Tuesday.
The spillover effects of the Easter Sunday attack on tourism and related industries resulting in an increase in unemployment, and relatively high inflation due to adverse weather conditions towards the latter part of 2019 were the key reasons for the decline in Economy and Business Climate sub-index.
The SLPI is a composite indicator compiled by the Statistics Department of the Central Bank to measure the level of prosperity of the country.
“Reduced usage of public transportation due to concerns on security, aftermath of the Easter Sunday attack, mainly resulted in the decline in Socio- Economic Infrastructure sub-index while improvements in the aspects of quality of education, health facilitation and wealth of people were the major contributors to the increase in Well-being of the People sub-index,” the release said.
Provincial Prosperity
Western province led with the highest value of the provincial prosperity index, while Southern and Central provinces were ranked at second and third positions, respectively. In comparison to the previous year, North Central province recorded the highest increase in the provincial prosperity index followed by Eastern and Western provinces.
Economy and Business Climate Sub-Index
Eastern, North Central, Northern and Uva provinces have recorded improvements in the sub-index with increases in informal sector wages and increased formal sector employment. The deterioration of the sub-index in other provinces was mainly caused by decreases in employment and high inflation levels.
Well-being of the People Sub-Index
This sub-index improved in all provinces except for the Southern, predominantly due to improvements in the aspects of health, education and wealth of people where vehicle ownership and access to supermarkets increased. Meanwhile, the slight deterioration of the sub-index in the Southern province was mainly due to reduced levels in the aspects of environment, entertainment and education.
Socio-Economic Infrastructure
Sub-Index
Southern and Western provinces recorded increases in the sub-index with improvements to the road network, availability of electricity and enhanced crime-free environment. The decline of the sub-index of other provinces, with the highest decline recording from Uva, was mainly due to reduced levels of transportation and availability of safe drinking water.