Evaluating Sri Lankan economic performance & impact of supply side policies

INTERNAL
Date of Submission – 21| 05| 2021
Business Economics AAF045-6 2019936
1
Business Economics (AAF045-6)
By
Rajawardena Patabendige Thejani 2019936
Individual
Report
Assessment- 2
Word count- 3072
(Excluding table of contents & References)

INTERNAL
Business Economics AAF045-6 2019936
2
Evaluating Sri Lankan economic
performance & impact of supply
side policies

Business AAF04 20199
INTERN
3
Table of Contents
1.0 Introduction..........................................................................................................................5
1.1 Problem Statement – Economic Recession......................................................................5
1.2 Problem vs Objective of Sri Lankan Economy..................................................................6
2.0 Literature Review............................................................................................................7
2.1 causes identified to the Economic Recession in Sri Lanka...............................................7
2.2 Major Downside Risking Financials.............................................................................7
2.1.1 Inflation & Exchange Rates.......................................................................................7
2.1.2 Savings & Investments.........................................................................................8
2.1.3 Supply side shocks................................................................................................8
2.3 Under performance of Expected vs Real GDP..................................................................8
2.4 Unemployment Rate...................................................................................................9
3.0 Discussion on effectiveness & Suitability of policies..........................................................10
3.1 Government interference to overcome Macroeconomic Circumstances.........................10
3.1 Current Government policies & activities taken to overcome the economic
disturbances.........................................................................................................................10
4.0 Practicing Supply Side Policies as an essential ingredient to expedite economic growth of
Sri Lanka...................................................................................................................................11
4.1 Trade reformation..........................................................................................................11
4.2 Reducing taxes...............................................................................................................12
4.4 Privatization & PPP.........................................................................................................12
4.3 Infrastructural & Transport Developments as an interventionist.................................13
4.4 Improved health care as an interventionist...................................................................13
4.5 Increasing education & training.....................................................................................14
4.6 Limitations of Supply Side Policies.................................................................................14
5.0 Conclusion..........................................................................................................................14

Business AAF04 20199
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Bibliography.............................................................................................................................16
List of Figures & tables
Figure 1 Economic Growth.........................................................................................................7
Figure 2 Savings & Investment Rate 2016- 2020.......................................................................8
Figure 3 GDP Growth Quarterly.................................................................................................8
Figure 4 Expenditure Current market prices..............................................................................9
Figure 5 Production (Constant 2010 prices)..............................................................................9
Table 1Inflation & Exchange Rates.............................................................................................7
Table 2 Investment Variations...................................................................................................8