INTRODUCTION OF SRILANKA

In many ways, Sri Lanka is a development success story. Its economy has been
growing steadily and this has lifted millions of people out of poverty and boosted shared
prosperity. Moving higher up on the economic ladder, however, will require addressing
new challenges involving bold decisions.
Sri Lankas social achievements are impressive. Since the war ended in May 2009,
economic growth has been robust (at an average of 7.4%) and prosperity has been
spread widely despite a difficult external environment due to the global financial crisis.
Sri Lanka stands out as a lower middle-income country in a region that hosts the worlds
greatest concentration of poor. The number of people living in poverty in Sri Lanka has
fallen to 9 percent in 2009 from 23 percent in 2002. Measures of education, health and
life expectancy are amongst the highest in South Asia and compare well to countries
around the world with similar per capita income.

KEI

The Knowledge Economy Index (KEI) is an aggregate index that represents the
overall level of development of a country or region in the Knowledge Economy. It
summarizes performance over the four knowledge economy pillars, takes into
account whether the environment is conducive for knowledge to be used effectively
for economic development. The below table compares the KEI for Pakistan along
with SRI LANKA between year 2000 and 2009 -2010. On a positive note, Pakistan
has shown a good progress of all during last nine years.
KNOWLEDGE ECONOMY INDEX
2009

COUNTRIES
SRIL ANKA
Pakistan

4.17
2.34

2000
4.3
1.89

Pakistans KEI for 2009-2010 is 2.34 whereas the world average for KEI is 5.95. If
we compare the economy with the World Banks income group of lower middle
income economies (we fall in the same group), Pakistan is again on a lower side.
The average KEI for lower middle economies presently is 3.78.

Pakistans KEI has risen from 1.89 since 2000 to 2.34 in 2009, a positive 0.45
change rate. However, overall KEI still stands lowest among the regional countries
like, Sri Lanka Which although decreases in index from 2000 to 2009 but still stand
at 4.17 on 2009

HDI

Growth in value of the Human Development Index (HDI) for Pakistan has almost stagnated
over the last five years, according to a study carried out by a UN agency. Presenting key
conclusions of the Human Development Report 2014 at a ceremony here, ANDRE
FRANCHE , the country director of the United Nations Development Programme (UNDP),
said the rising or stagnating income and educational inequality at the global level had
contributed to the slow growth in human development.
Pakistan stays at 146 on HDI
The UNDP also released its 2014 Human Development Index (HDI) values for 187 countries
and UN-recognised territories, ranking the countries in terms of economic and human
development indicators. Pakistans HDI for 2013 is 0.537 which is in the low index
category placing the country at the 146th position out of 187 countries and territories.
According to the highlights of the global human development report (hdr) 2015 released by
the un development programme (UNDP)
Sri Lanka has been placed at the 73rd rank with an HDI value of 0.757. In the previous years
report, it occupied the 74th place. Since the end of the civil war in 2009, the countrys rank went
up by five. The report, which studied a total of 188 countries and territories, has determined the
HDI values by assessing long-term progress in three basic dimensions of human developmenta
long and healthy life, access to knowledge and a decent standard of living.

POVERT
Pakistan has seen an exceptional decline in poverty over the last 15 years, down
from nearly 35 percent of the population in 2001-02 to under 10 percent in 201314. After such progress, most developing countries revisit their poverty
threshold. Pakistan is poised to do just that, reflecting the improved standard of
living and state of development in the country. This will not only help better
target programs to reach those truly in need in todays Pakistan, but also better
reflect a more inclusive view of who is disadvantaged, with the aim of making
even more progress for Pakistans people in the years to come.

Based on the most recent Household Income and expenditure Survey (HIES),
conducted in 2013-14, Pakistans poverty line was equal to 2259.4 rupees per
adult equivalent per month.i This number translates into 2502.32 rupees per
person, per month.
The percentage of people living below the poverty line decreased by around 25
points; from a high of 34.6 percent in 2001-02 to 9.3 percent in 2013-14.

ALTHOUGH Sri Lanka is in many respects a development success story The national
poverty headcount rate declined from 22.7 to 6.7 percent between 2002 and 2012/13 BUT
National poverty headcount ratio has declined from 8.9 percent in 2009/10 to 6.7 percent in 2012/13.
Poverty headcount ratios were lower in 18 districts while it was higher in 4 districts in 2012/13 when
compared with 2009/10. MANNAR, MULLAITIVU AND KILINOCHCHI districts were
successfully covered for the first time since the inception of the survey. The lowest HCR (1.4%) was
reported from Colombo district while the highest HCR (28.8%) was reported from Mullaitivu district.