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අපේ ආර්ථිකයට මොකද වුණේ?

සංඛ්‍යා දත්ත ඇසුරින් කෙරෙන විග්‍රහයක්

E M M K Ekanayake

Deputy Director

Department of Census and Statistics

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Outline

  • Current situation
  • Government Income, Expenditure �and Budget Deficit
  • Government Debt, Foreign Debt and Repayment
  • Money Supply, Interest Rate, Exchange Rate �and Inflation
  • Gross Domestic Product (GDP) and Growth
  • International Trade, Trade Balance & Overall Balance
  • Monthly challenge to the treasury

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Sri Lankan Economy: Current Situation

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World Richest Characters (top 5 ranks, 2022)

  • Elon Musk
  • USA
  • $ 219 Bn (worth)
  • Tesla, Space X
  • $ 7 Bn (Annual salary)
  • Jeff Bezos
  • USA
  • $ 177 Bn (worth)
  • Amazon
  • $ 78 Bn (Annual Income)
  • Bernard Arnault
  • France
  • $ 158 Bn (worth)
  • LVMH
  • $ 7 Bn (Annual Income)
  • Bill Gates
  • USA
  • $ 129 Bn (worth)
  • Microsoft
  • $ 4 Bn (Annual Income)
  • Warren Buffett
  • USA
  • $ 118 Bn (worth)
  • Berkshire Hathaway
  • $ 12 Bn (Annual Income)
  • Sri Lanka
  • $ -50.7 Bn (worth)
  • Ceylon Tea
  • $ 83 Bn (Annual GDP)

“Twitter” Deal by Elon Musk was $44 Bn in April 2022

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Current Situation

  • Sri Lanka
  • $ -50.7 Bn (worth)
  • Ceylon Tea
  • $ 83,800 Mn (Annual GDP)

Economic Indicator

USD Value

Rupee Value

GDP, 2021

USD ($) Mn 83,878

Rs. Mn 16,809,309

Government Income, 2021

Rs. Mn 1,463,810

Government Expenditure, 2021

Rs. Mn 3,521,735

Budget Deficit, 2021

Rs. Mn 2,057,925

Exports, 2021

USD ($) Mn 12,499

Rs. Mn 2,486,943

Imports, 2021

USD ($) Mn 20,637

Rs. Mn 4,104,218

Trade Balance, 2021

USD ($) Mn -8,139

Rs. Mn -1,617,274

Total Domestic Debt, 2021

Rs. Mn 7,422,527

Total External Debt, 2021

USD ($) Mn 50,724

Rs. Mn 10,166,846

Exchange Rate, May 2022

1 USD = Rs.

364.45

Interest Rate, policy bank rate, May 2022

17.5%

Inflation, April 2022

21.5 % NCPI

29.8 % CCPI

Growth in Money supply (M1)

2021/20

24%

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Monthly challenge to the treasury

Variable

Expected Value

External Trade

Doller demand for Monthly Imports (Avg. of 2019/2021)

USD Mn 1500 - 1700

Monthly allocation of Debt service (interest and installment)

USD Mn 300 - 500

Doller income from Monthly Exports (Avg. of 2019/2021)

USD Mn 800 - 1000

Earnings from Tourism (monthly average)

USD Mn 150 - 170

Remittances and other primary income (monthly average)

USD Mn 200 - 250

Government Income and Expenditure

Total Salary Bill, Monthly average

Rs. Bn 70 - 80

Other recurrent expenditures, Monthly average

Rs. Bn 160

Capital expenditures, Monthly average

Rs. Bn 60

Tax Income, Monthly average

Rs.Bn 108

Other Income, Monthly average

Rs. Bn 13

External Balance

Expected Monthly Deficit

= USD Mn 600

Domestic Balance

Expected Monthly Deficit

= Rs. Bn 150

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Government Income, Expenditure �and Budget Deficit

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Government Finance (Rs. Million)

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Government Borrowings, Rs. Million

Year

Foreign Borrowings

Domestic Borrowings

Total Borrowings

1990

11,644

13,508

34,733

1995

21,224

33,972

34,467

2000

495

118,500

166,273

2005

47,773

123,604

165,546

2006

41,942

163,805

264,712

2007

100,907

145,137

140,494

2008

(4,643)

314,287

545,094

2009

230,807

245,554

489,342

2010

243,788

202,229

421,185

2011

218,956

231,224

517,679

2012

286,455

202,511

326,211

2013

123,700

392,390

604,913

2014

212,523

378,721

615,524

2015

236,803

592,699

984,613

2016

391,914

248,411

687,655

2017

439,243

294,251

617,786

2018

323,535

437,234

979,875

2019

542,641

896,448

813,249

2020

(83,199)

1,750,887

1,736,986

2021

(13,901)

2,071,826

2,071,826

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Debt statistics from 1990 (Rs. Million)

Year

Domestic Debt (Rs. Mn)

Foreign Debt (Rs. Mn)

Total Debt (Rs. Mn)

1990

133,896

176,883

310,779

1995

289,410

346,286

635,696

2000

676,660

542,040

1,218,700

2005

1,270,119

956,620

2,226,739

2010

2,570,059

2,024,583

4,594,642

2015

5,055,159

3,544,031

8,599,190

2016

5,433,073

4,045,796

9,478,869

2017

5,664,215

4,718,618

10,382,832

2018

6,071,001

5,959,547

12,030,548

2019

3,075,912

9,955,631

13,031,543

2020

5,975,556

9,141,691

15,117,247

2021

7,422,527

10,166,846

17,589,373

At the end of 2021, Total Foreign Debt was $ 50.7 Billion

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Money Supply, Interest Rate, Exchange Rate �and Inflation

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Money Supply (M1 and M2)

Year

Narrow Money Supply (M1, Rs. Bn )

Broad Money supply (M2, Rs. Bn)

2010

407

1,813

2011

439

2,193

2012

450

2,593

2013

485

3,059

2014

612

3,461

2015

715

4,057

2016

777

4,824

2017

793

5,665

2018

831

6,427

2019

865

6,913

2020

1,177

8,496

2021

1,460

9,639

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Demand And Supply of Foreign Currencies

  • Exchange Rate?

USD Million

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Exchange Rate (USD, 1$=Rs.?)

Today; 1 USD ($) = Rs. 364.45

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Inflation

NCPI

(Y-O-Y%)

CCPI

(Y-O-Y%)

January 2022

16.8

14.2

February 2022

17.5

15.1

March 2022

21.5

18.7

April 2022

29.8

Sri Lanka’s Inflation was 132% in End of April 2022

Professor Steve Hanke of John Hopkins University, USA

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Gross Domestic Product (GDP) and Growth

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Gross Domestic Product (GDP), Rs. Million

Year

GDP at Current price

GDP at Constant (2010) price

2010

6,413,668

6,413,668

2011

7,219,106

6,952,720

2012

8,732,463

7,588,517

2013

9,592,125

7,846,202

2014

10,361,151

8,235,429

2015

10,950,621

8,647,833

2016

11,996,083

9,035,830

2017

13,328,103

9,359,147

2018

14,290,907

9,665,379

2019

14,997,157

9,890,468

2020

15,027,374

9,532,909

2021

16,809,309

9,881,397

GDP in dollar terms, 2021; USD ($) Mn 83,878

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Q GDP at Constant (2010) Prices

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Sectoral Contribution

  • Ten year GDP Growth (2010 to 2019) and contribution to growth by major industry group

20

#

Industry Group

Share (%) (2019)

Growth of Decade 202 (%)

Contribution to Growth (%)

Rank (GVA)

1

Agriculture

6.96

26.23

4.11

4

2

Industries

26.37

52.63

25.88

2

3

Services

57.44

62.11

62.62

1

4

GVA

90.77

55.89

92.61

5

Taxes on products

9.61

38.12

7.54

3

6

Subsidies (-)

- 0.38

16.13

- 0.15

7

GDP

100.00

54.19

100.00

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Contribution to Growth by Economic Activity

21

  • Ten year GDP Growth (54.2% - 2010 to 2019) and contribution by each activity

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GDP Growth

Year

Growth Rate

2011

8.40

2012

9.14

2013

3.40

2014

4.96

2015

5.01

2016

4.49

2017

3.58

2018

3.27

2019

2.33

2020

(3.62)

2021

3.66

Outliers

Q2 2020 and

Q2 2021

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Post-war period (2010/12)

Post-war construction ended (2013)

Last Q of Govt. (2010/14)

First Q of Govt. (2015/19)

Govt. Change (Q4 2018)

Easter Attack April 21 (Q2 2019)

Global COVID19 Impact

(Q1 2020)

COVID19 impact (Q2 2020 to Q4 2021)

Note that two outliers are treated as “0”

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International Trade, Trade Balance Overall Balance

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Imports, Exports and Trade Balance (USD Mn)

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What are the other sources of financing trade balance?

  • Workers remittances
  • Earnings from tourism

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Workers Remittances (USD Mn)

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Earnings from Tourism (USD Mn)

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How it was balanced?

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Trade, Transfers, Primary Income, FDI, Trade Balance, Current Acc Balance & Overall Balance

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Monthly challenge to the treasury and Result

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Monthly challenge to the treasury

Variable

Expected Value

External Trade

Doller demand for Monthly Imports (Avg. of 2019/2021)

USD Mn 1500 - 1700

Monthly allocation of Debt service (interest and installment)

USD Mn 300 - 500

Doller income from Monthly Exports (Avg. of 2019/2021)

USD Mn 800 - 1000

Earnings from Tourism (monthly average)

USD Mn 150 - 170

Remittances and other primary income (monthly average)

USD Mn 200 - 250

Government Income and Expenditure

Total Salary Bill, Monthly average

Rs. Bn 70 - 80

Other recurrent expenditures, Monthly average

Rs. Bn 160

Capital expenditures, Monthly average

Rs. Bn 60

Tax Income, Monthly average

Rs.Bn 108

Other Income, Monthly average

Rs. Bn 13

External Balance

Expected Monthly Deficit

= USD Mn 600

Domestic Balance

Expected Monthly Deficit

= Rs. Bn 150

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The Result from April 2022

General Treasury become “Empty”

Foreign Reserves value become “Zero”

Central Bank officially announced that we are unable to pay foreign loan interests and installment

Fitch rating become “RD”

S&P rating become “SD”

Moody's rating become “Ca”

We are not in a position to borrow foreign loans anymore except FDI, free grants or aids

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Thank You!�����Q&A