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The Cost of Inflation: Sustaining 2015 Consumption in 2023
Sri Lanka's is set to experience a 160% increase in nominal GDP from the 2015 levels of LKR 11.6 trillion as projected nominal GDP for 2023 estimated at LKR 30.3 trillion. However, while the real GDP in 2023 remains relatively unchanged from the 2015 levels, the doubling of nominal GDP highlights the need for a corresponding increase in incomes to maintain the same level of consumption as in 2015. In essence, this means that incomes must grow by 160%, in order to maintain the same level of consumption one did in 2015.
Featured Insight
The Cost of Inflation: Sustaining 2015 Consumption in 2023
Sri Lanka's is set to experience a 160% increase in nominal GDP from the 2015 levels of LKR 11.6 trillion as projected nominal GDP for 2023 estimated at LKR 30.3 trillion. However, while the real GDP in 2023 remains relatively unchanged from the 2015 levels, the doubling of nominal GDP highlights the need for a corresponding increase in incomes to maintain the same level of consumption as in 2015. In essence, this means that incomes must grow by 160%, in order to maintain the same level of consumption one did in 2015.
Featured Insight
The Cost of Inflation: Sustaining 2015 Consumption in 2023
Sri Lanka's is set to experience a 160% increase in nominal GDP from the 2015 levels of LKR 11.6 trillion as projected nominal GDP for 2023 estimated at LKR 30.3 trillion. However, while the real GDP in 2023 remains relatively unchanged from the 2015 levels, the doubling of nominal GDP highlights the need for a corresponding increase in incomes to maintain the same level of consumption as in 2015. In essence, this means that incomes must grow by 160%, in order to maintain the same level of consumption one did in 2015.
Featured Insight
The Cost of Inflation: Sustaining 2015 Consumption in 2023
Sri Lanka's is set to experience a 160% increase in nominal GDP from the 2015 levels of LKR 11.6 trillion as projected nominal GDP for 2023 estimated at LKR 30.3 trillion. However, while the real GDP in 2023 remains relatively unchanged from the 2015 levels, the doubling of nominal GDP highlights the need for a corresponding increase in incomes to maintain the same level of consumption as in 2015. In essence, this means that incomes must grow by 160%, in order to maintain the same level of consumption one did in 2015.
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Cigarette Taxation: 20 Billion Extra Revenue in 2020, if Indexation is Implemented
The Government could raise an extra Rs. 20 Billion from cigarette taxation in 2020 from the proper implementation of the indexation policy articulated in the 2019 Budget and rational calibration of taxes for all cigarette brands....
2020-06-03
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Cigarette Tax Indexation: Getting it Right and Getting it Wrong
The indexation method introduced in 2019 Budget addresses two pervasive problems in cigarette taxation: (a) lack of regularity and consistency in tax increases, and (b) failure to reduce affordability of cigarettes.
2019-08-01
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Tobacco Policy: Mitigating the Influence of Vested Interests
Sri Lanka ratified the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) in November 2003. The FCTC is a global treaty developed in response to t...
2018-07-31
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The Hidden Side of Cigarette Pricing
The media in Sri Lanka has often misrepresented the cigarette industry and cigarette taxes in favour of the monopoly producer Ceylon Tobacco Company (CTC). In June 2017, Verité Research (VR) pub...
2018-05-31
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Who is responsible for Alternative facts on Cigarette Taxation?
The term ‘Alternative Facts’ has come to describe ‘blatant falsehoods’ spread to the media by those in power who purposely create doubt about even obvious and easily verifiable facts. Over the last few months, the Sri...
2017-06-01
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