6% GDP growth in 2015, a challenge; comparing rebased numbers technically wrong: CB


July 21, 2015 (LBO) – Sri Lanka’s Deputy Governor of the Central Bank says it would be difficult to maintain a 6 percent growth this year.

“Looking at the last year’s quarter two, three and four growth rates which were higher or increasing; which means it’s a higher base,”

“So it would be a challenge for us to see at least a 6 percent growth this year based on the numbers that we see right now.” Deputy Governor Dr. Nandalal Weerasinghe emphasized.

Weerasinghe further stated that it is a technical mistake to compare re-based GDP growth rates with previous numbers.

“Those two growth rates are not comparable. Because it’s two bases, they (Statistics Dept.) have made it very clear,”

“If anyone is trying to compare these things I think it’s a technical mistake.”

The Census and Statistics Department recently published a new set of national account estimates adopting the latest version of the United Nation’s System of National Accounts.

Accordingly, the base year for national accounts statistics was changed to 2010 from 2002.

However there was a debate between former Central Bank Governor Nivard Cabraal and Deputy Minister Harsha de Silva over the growth rates after the GDP re-basing exercise.

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