Data Presentation And Analysis Of Economic Devolopment Economics Esssay

Reflecting the resiliency of the economic system to unfavourable domestic and external challenges and the ability to prolong the growing at 6 per centum or over for five back-to-back old ages per capita income reached US $ 2,014 in 2009.

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Beginning: Ministry of Finance and Planning Sri Lanka Annual Reports

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Beginning: Ministry of Finance and Planning Sri Lanka Annual Report 2009

GROWTH IN OVERALL EXPORTS DESPITE MANY CHALLENGES

Net incomes from exports recorded a growing of 6.5 per centum to US $ 8,137 million in 2008. Exports which grew by around 10 per centum during the first three quarters of the twelvemonth 2008 suffered due to the contraction of the universe demand, towards the latter portion of the twelvemonth. The public presentation in the growing were notable sing challenges that had to be faced such as the economic lowdown faced by major merchandising spouses, high oil monetary values, and eventful cost escalations coupled with the uncertainnesss associated with the handiness of grants under the GSP + strategy. In 2009 little lessening of export is seeable, that is strictly a consequence of the concluding stage of war.

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Beginning: Ministry of Finance and Planning Sri Lanka Annual Reports

Industry SECTOR RECORDS A MODERATE GROWTH AMIDST CHALLENGES

Defying the worsening demand following the lag in major economic systems, the high cost of production stemming from high oil monetary values and attendant domestic monetary value additions, value add-on in the industrial sector grew by 5.9 per centum in 2008 ; 4.2 per cent in 2009 compared to the 8.1 per centum witnessed in 2006. All sub sectors viz. mining and quarrying, fabrication, electricity, gas and H2O, and building contributed favourably for the growing in the sector.

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Beginning: Ministry of Finance and Planning Sri Lanka Annual Reports

The mill industry grew by 7 per centum in 2008, compared to 6.7 per centum growing in 2007 and declined once more in 2009. This accomplishment should be viewed in a background of comparatively high eroding in the fight stemming from high cost of electricity, fuel, H2O and involvement cost, coupled with worsening demand conditions in major export finishs and slow domestic demand due to the tight pecuniary policy stance adopted by the Central Bank of Sri Lanka. The public presentation of export oriented industries deteriorated particularly towards the latter portion of 2008, due to weakening planetary economic conditions and stiff competitions from low cost fabrication states such as China, India and Cambodia.[ 1 ]

The major export oriented industries being dress and leather sectors recorded a slower growing in 2008 and 2009, due to external force per unit areas, consequent to major purchasers following a more cautious attack in puting the orders due o the economic lag, war related incidents of misdemeanor of human rights. Even under hard conditions, the dress and garment exports reached to US $ 3,469 million in 2008 by following eco friendly fabricating mechanisms easing solid waste direction and low C emanation, thereby assisting the dress sector to defy related planetary force per unit areas.

Worker Remittance. Worker remittal besides has been increased during past five old ages.

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Beginning: Ministry of Finance and Planning Sri Lanka Annual Report 2009

HUMAN DEVELOPMENT INDEX ( HDI )

Each twelvemonth since 1990 the Human Development Report has published the human development index ( HDI ) which looks beyond GDP to a broader definition of wellbeing. The HDI provides a composite step of three dimensions of human development: life a long and healthy life ( measured by life anticipation ) , being educated ( measured by grownup literacy and gross registration in instruction ) and holding a nice criterion of life ( measured by buying power para, PPP, income ) . Year 2009 HDI, which refers to 2007, high spots HDI for Sri Lanka as 0.759, which gives the state a rank of 102nd out of 182 states.

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Beginning: Indicator table G of Human Development Index 2009

OPINIONS OF KEY PERSONNEL IN THE FIELD ON GSP+

The ceramic industry is already enduring because of deficiency of demand caused by planetary recession, ensuing in decreased overtime work and pay. Mr. Wijesingha, who heads tableware exporter Dankotuwa Porcelain, says the possible loss of GSP Plus could do a loss of orders as it would raise import monetary values for European purchasers, motivating them to purchase from elsewhere. A big portion of the ceramic industry work force consists of 1,000 people of whom 46 per centum are females, many married and holding kids. If we have no work to offer them there ‘ll be a serious state of affairs for tonss of households. Unlike garment mills with high turnover, because of the good footings we give, our female employees remain till retirement. Many have childs in ordinary degree and advanced degree categories where costs are high.

Exporters ‘ Association Chairperson Mrs. Nirmali Samaratunga said this would hold a important impact on Sri Lankan exports. They need to pitch themselves to run into the stiff competition from low cost manufacturers, and exploit the chances emerging one time the recession simplicities and economic systems start retrieving.

Federation of Chamber of Commerce and Industry of Sri Lanka ( FCCISL ) President Kosala Wickramanayake said the concern community should ease a healthy duologue with the EU and the Sri Lankan Government. The EU should non use different criterions for different states which could be seen every bit biased as some states holding trade grants from EU have worse records than Sri Lanka.

National Chamber of Exporters of Sri Lanka ( NCE ) President, Mr. Sarath de Silva said GSP+ grant was a impermanent grant. We believe that GSP+ does non use to every export merchandise. Yet it is utile to the state and for the exporters. However, Sri Lanka could still travel frontward without the GSP+ grant as our exporters are wise, hardworking and efficient and are capable to go on their public presentation outstandingly.

Businessman and BOI Chairman Mr. Dhammika Perera has said the remotion of the GSP+ will non do as deep an feeling as projected by the resistance parties.

Central Bank Governor, Ajith Nivard Cabraal said this was something the state was prepared for and expected. “ We have taken necessary steps to get the better of this state of affairs. The drastic bead in the involvement rates, support of the exchange rates, high assurance degree of the concern community, high competition and increased productiveness will help concerns to set into this state of affairs ” .

“ I do n’t believe clients will merely drop us because the GSP+ is gone. But of class they will force us to cut down our monetary values. Some classs may besides go less competitory. But overall, Sri Lanka is such a strong supply base and we have a strong repute for quality and dependability, I think the state of affairs will non be intolerable ” said the CEO of MAS Investments, Chandana De Silva. MAS Holdings is one of Sri Lanka ‘s biggest dress exporters. About 30 % of the group ‘s exports go into the EU.

The Joint Apparel Association Forum ( JAAF ) the representative organic structure of the garment sector is trusting for the best. “ We are confident the authorities will work something out ” said the Secretary General of the JAAF, Rohan Masakorala. The Garments without Guilt run was launched by the Joint Apparel Associations Forum ( JAAF ) several old ages ago to educate western retail merchants that Sri Lanka ‘s garment industry upheld international labor criterions where mills were non sweatshops, provided nice on the job conditions and other benefits to workers, and where kids had no topographic point in mills.

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Analysis OF QUESTIONNAIRES OF LOW LEVEL EMPLOYEES

After analysing the 100 questionnaires, following of import findings were come across with.

a. Knowledge on GSP+ . It is surprise to see that many of the employees have n’t heard of GSP+ . Some have heard it through Television, but non taken any involvement to cognize what it is. Merely one knew what it is.

Not heard at all – 60 %

Heard but non understood – 39 %

Heard and known – 1 %

B. Salary graduated table. Mjority earns less than Rs 15000. But the have to pass more than Rs 6000 for their repasts and lodger houses. Merely the workers who have more than ten old ages of service tend to acquire around Rs 20000.

Below Rs 15000 – 72 %

Between Rs 15000 – 20000 – 23 %

More than 20000 – 5 %

c. Residences of employees. Many of the employees are from rural countries and tempory resided in a embarkation house near to their work topographic point.

Colombo territory – 11 %

Gampaha territory – 21 %

Out of Gampaha and Colombo – 68 %

d. Marital position Factories attracts largely single workers and they get marry whist being the employee.

Single – 73 %

Married – 27 %

e. Number of dependents. As many of them are single they have to assist their parents and unemployed brothers and sisters. Most of their parents are husbandmans or labors ; extra income has well helped to elate their life criterions.

None – 9 %

One – 14 %

Two – 23 %

Three – 35 %

Four and above – 27 %

f. Confident on happening out another income in instance of losing present employment. It was found that many companies have batch of vacancies for low degree employees particularly in the dress sector. Some hope to make paddy cultivation if they loose the occupations.

From same export sector – 81 %

Another mean of income – 15 %

Can non happen a mean of income – 4 %

g. Idea on what authorities should to recover GSP+ . Even after explained them about the state of affairs, bulk were non interested in believing on that due low educational degree.

No thought – 85 %

Picketing against EU – 12 %

Dialogue with EU – 3 %