Sri Lanka projects have to be reassessed to reflect realistic numbers with GDP change: Harsha

Sri-Lanka

July 09, 2015 (LBO) – Sri Lanka projects that based their assumptions using old GDP numbers have to be reassessed to reflect more realistic numbers, former Deputy Minister of Policy Planning Harsha de Silva said.

Department of Census and Statistics on Thursday revealed that the growth numbers in the last two years has been reduced significantly with the change of base year from 2002 to 2010.

“What we want to communicate is that not that any body has told us lie,” Silva said.

“Every one is basing their assumptions on the data that was already given by the Statistics Department,”

“So once this re-basing exercise has been completed all those projects have to be reassessed. Those will be the more realistic numbers.”

Silva told reporters Thursday the reason for not changing the base year during the past few years.

“All the other regional countries including India did it. Europe and England did it. Even the Africa has done it. Sri Lanka was one of the outliers and we now realized why,”

“There was no priority to get it done because unlike in most countries where you saw the GDP growth rates increased; What we are seeing here is a reduction in the growth rate,”

“Not a minor reduction in the growth rate but a significant reduction in the growth rate.”

However the deputy minister said he is not expecting any adjustments to the risk profile of Sri Lanka.

“I don’t expect any ratings changes or any adjustments to the risk profile of Sri Lanka. It is just a re-basing exercise and presenting the actual situation of the country. That’s all.”

growth-rate

GDP values for the period from 2010 to 2014 compiled using 2002 and 2010 as base
years are compared.