Sri Lanka Prosperity Index(SLPI)1, recorded an index value of 0.796 in 2021 with a slight increase compared to 0.764 recorded in 2020 where the economy was severely affected by the COVID-19 pandemic. The marginal increases of ‘Economy and Business Climate’, ‘Well-being of the People’ and ‘Socio-Economic Infrastructure’ sub-indices have contributed to this slight increment in SLPI.
Overall increase in the Economy and Business Climate sub-index in 2021 was driven by increases in Gross Domestic Product (GDP) per capita in nominal terms, employment, wages and industrial density compared to 2020. However, relatively high inflation in 2021 compared to the previous year had detrimental effects on the sub-index.
The marginal increase observed in the Well-being of the People sub-index was predominately due to the facilitation for education and improvements in people’s wealth in 2021 compared to 2020. However, subdued performance in education, drop in health facilities such as lower availability of medical officers, reduced cleanliness of environment and low engagement in entertainment activities negatively contributed to the performance of the sub-index.
Expansions in electricity supply and telephone facilities as well as the road developments during the year have moderated the negative impact on Socio-Economic Infrastructure sub-index caused by the decline in usage of public transportation facilities, reduced availability of clean and safe drinking water and the higher number of crimes reported during 2021.
(CBSL)
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