Comments on: Real and Phantom Per Capita Income in Sri Lanka

By: Mary de silva

Mary de silva — Fri, 19 Apr 2013 11:16:26 +0000

Groundviews, you have some interesting insights, great reporting so I constantly follow your blog. Yet you seem like such a glass is half empty kind of establishment. What positive news reporting have you evere done? You and a lot of other Sri Lanka media facilitate this climate of hopelessness. Why can’t you ever see something positive and just accept it. These figures show that more money is entering Sri Lanka regardless of whose hands it is going to and that’s that.

By: “Real and Phantom Per Capita Income in Sri Lanka” (Groundviews.org) | SRI LANKA & DIASPORAS

Wed, 27 Mar 2013 18:35:22 +0000

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By: jayakarthik

jayakarthik — Tue, 05 Feb 2013 17:48:00 +0000

while any good economics student or an economist has to accept what saravanathan says other factors also need to be taken into account.freedom to do business,good infrastructure,ease with which business can be started.one of the reasons why united states of america is prosperous when compared to other countries is its pro business environment and rule of law.while gdp growth can indicate how people lives are changing economically other factors also play a key role.as far as srilanka becoming a tiger economy it needs better governance,respect for law and greater integration into world economy.

By: rohan

rohan — Wed, 30 Jan 2013 19:18:37 +0000

although I fully endorse the article, the writer needs to explain clearly why GDP per capita is not a good enough measure of prosperity. In addition to inflation, he should explain how income disparity, taxation and public vs.private investment can distort the measure for a particular country over a period of time and as a comparator between nations at a point in time. Hopefully, a clearer explanation will attract more debate.

By: Sarath Fernando

Sarath Fernando — Wed, 30 Jan 2013 17:50:37 +0000

“Average per capita income” figures obscure the effect of the grotesquely large and widening income gap between the haves and have-nots, a distinctly vivid phenomenon in this blessed economy.

For instance, if 1% of the population earns 40% of the income, an income growth of the rich 1% could result in a rise in “average” even while the income of the rest tanks.

So, for useful inferences, Dr. Muttu Krishna, is it possible to give growth performance by some reasonable income segments – such as Top 1%, Top 10%, Bottom 50%? Thanks.

By: Au Contraire

Au Contraire — Wed, 30 Jan 2013 13:10:26 +0000

I must say, I’m not convinced by the findings of this HIES survey. Of more concern than the fact that it only covers 19 out 25 districts is that it is a “representative sample” of the households in those 19 districts (i.e. it does NOT cover every household in those 19 districts). Therefore, the HIES survey is not a reliable source of data.

On the other hand, you make a good point about the inaccuracy of the World Bank’s indicators. Indeed, Sri Lanka’s per capita income may be more or less on par with India’s. Mind you, given the vastly different recent history of the respective countries, that is a significant achievement on Sri Lanka’s part. Looking into the future, projected economic growth suggests that Sri Lanka could become an upper middle income country (per capita income of US$9,000) as early as 2020, making it South Asia’s first upper middle income country.

The problems with income of government and industry not trickling down to households is shared by India. This does not differentiate Sri Lanka from other countries in the region.

No one can credibly claim that average Sri Lankans are prosperous at present. However, the fact is, Sri Lankans are better off than most other South Asians.

By: Chandra Jayaratne

Chandra Jayaratne — Wed, 30 Jan 2013 06:31:04 +0000

My appreciative recognition of the valuable contribution of public awareness enhancement by Dr. Sarvananthan and also to Groundviews for making it available for intellectual debate.

I have noted the key clarifications by Dr. Sarvananthan that;
* it is important to understand that the per capita income of a country does not necessarily indicate the level of development of that country
*The Per Capita Income determined by the usual method is misleading, because it is worked out at current market prices.
*the real GNP based per capita income computation is a more realistic measure of Per Capita Income because it takes into account the rise in prices, i.e. inflation (as measured by the GDP deflator).
* Per Capita Income derived from the HIES is what relatively better reflects the real well-being of the people of a country.
*the politicians should stop duping the masses with spurious claims of prosperity and welfare.

In the light of above clarifications of Dr. Sarvi, who will “Bell the Cat” – Academics, Professional, Business, Or Media? and stand up to educate the masses to be wary of the trumpet calls of Politicians, Key Officials, Key Regulators and Associated Torch Bearers!
Chandra Jayaratne