Sri Lanka to publish accurate private savings number

Apr 10, 2013 (LBO) – Sri Lanka will consider publishing an accurate number for private savings from next year, separating out state enterprises which are lumped together as ‘private’ firms at the moment, officials said. Domestic savings are made up from central government savings, state enterprise and private entities. A deficit in the current account of the budget is net spending or ‘dis-saving’, and can be readily seen.

In 2012 the deficit in the current account was 1.4 percent of gross domestic product, while the so-called private savings was 18.4 percent of GDP. Because the government was a net spender, domestic savings were reduced to 17.0 percent of GDP.

But inside the so-called private savings are also state enterprises which are running very large losses and contributing to dragging down private, domestic and also national savings, when losses exceed surpluses.

“At the moment we have the classification central government and private sector,” deputy Central Bank Governor Nandalal Weerasinghe told reporters and new briefing on Monday.

“State owned enterprises come under the private sector.”

Weerasinghe said the central bank will be able to publish a separate numbers for state and privat