CBSL governor good on reduced export of goods

30 September 2022 09:50 am Views - {{hitsCtrl.values.hits}} 2 Bookmark

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The governor of the Central Bank of Sri Lanka (CSBL) is reported as claiming that: (1) Sri Lanka’s export earnings as a percentage of Gross National Product (GNP) by 2001 stood at around 33%, and (2) it has dropped to below 15%, since 2001. To evaluate this claim, FactCheck.lk consulted annual reports and export statistics of the CBSL.

FactCheck.lk assumed that, despite the phrasing in the article, the governor was referring to export earnings as a percentage of GDP (not GNP) as it is the more standard measure of economic production. The reference to “by 2001” in the reporting was taken to mean the same as “by the end of the year 2000” as statistics are reported on a year-end basis.

The term ‘exports’ is commonly used to refer to either ‘total exports (goods and services)’ or just ‘goods (merchandise) exports’. FactCheck.lk evaluated the statement on both ways of using the term.

The governor is correct on the export earnings as a percentage of GDP being at 33% by the end of the year 2000. This figure is correct for both total as well as goods export earnings.
CBSL statistics show that the goods export earnings as a percentage of GDP was below 15% for 2021. This is in line with the governor’s claim. The claim is not in line with total export earnings which was above 15% in 2021, which suggests the that the governor was referring to goods exports.

Both the claims of the governor are correct in terms of goods export earnings. Therefore, we classify the governor’s statement as TRUE.

FactCheck is a platform run by Verité Research.
For comments, suggestions and feedback, please visit www.factcheck.lk.

Comments - 2

Go home heritage Wednesday, 12 October 2022 06:37 PM

Exports now flat year-on-year, and far from how things were 20 years ago. Our country exports in time will be flat at best or continue to whittle down in the years ahead. Expecting anything else would be crazy fantasy! Exporting isn't like our grand cricket, we can't come out of nowhere and win. An intellectual economy is worth a try, because product export has no future. However, giving the failing exporter further concession because they are losing competitiveness internationally is madness. Let them die, and something good will somehow come about. Humans always find a way, and we're humans if we put aside our inefficient thinking of religious culture, so we should succeed if we have good mindset bereft of corrupting nationalist heritage and religion. That said the CBSL is totally useless and should be replaced, because they are actually worsening our economic situation with the current dollar peg.

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Percy Friday, 21 October 2022 05:32 AM

We certainly need a new government to promote an export drive. Sri Lankans have no knack for business and will do anything for easy money.

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