CENTRAL BANK OF SRI LANKA

Transcription

1 CENTRAL BANK OF SRI LANKA ANNUAL REPORT OF THE MONETARY BOARD TO THE HON. MINISTER OF FINANCE FOR THE YEAR 2012

2 ISBN ISSN X Price per copy Counter sales Rs. 400 per copy Despatch by ordinary mail Rs. 670 per copy Despatch by registered mail Rs. 695 per copy Despatch abroad Air mail (1st Class) US $ 40 per copy (Registered post) Air mail (2nd Class) US $ 35 per copy (Registered post) Sea mail US $ 25 per copy (Registered post) Printed at Sharp Graphic House (Pvt.) Ltd., No47, Old Kottawa Road, Pannipitiya, and published by the Central Bank of Sri Lanka, 30, Janadhipathi Mawatha, Colombo,

3 Ajith Nivard Cabraal The Governor Central Bank of Sri Lanka 30, Janadhipathi Mawatha Colombo 01, Sri Lanka. March 28, 2013 His Excellency Mahinda Rajapaksa President of Sri Lanka and Minister of Finance and Planning Presidential Secretariat Colombo 01. Your Excellency, Annual Report 2012 Section 35 of the Monetary Law Act (Chapter 422) requires the Monetary Board of the Central Bank of Sri Lanka to submit an Annual Report to the Minister of Finance on the state of the economy, the condition of the Central Bank and a review of the policies and measures adopted by the Monetary Board, within four months after the end of each financial year. The Sixty Third Annual Report of the Monetary Board of the Central Bank, in respect of the year 2012, is submitted herewith in fulfilment of this obligation. Yours sincerely,

4 CENTRAL BANK OF SRI LANKA THE MONETARY BOARD (As at 31 December 2012) AJITH NIVARD CABRAAL Governor P. B. JAYASUNDERA Secretary to the Ministry of Finance and Planning MRS. M. RAMANATHAN Appointed Member NIMAL WELGAMA Appointed Member N. A. UMAGILIYA Appointed Member PRINCIPAL OFFICERS AS AT 31 December 2012 Deputy Governors B. D. W. ANANDA SILVA P. NANDALAL WEERASINGHE MRS. CHANDRA PREMARATNE Assistant Governors P. SAMARASIRI (Secretary to the Monetary Board) W. M. KARUNARATNE MRS. J. P. MAMPITIYA W. M. HEMACHANDRA S. LANKATHILAKE C. J. P. SIRIWARDENA MRS. R. DHEERASINGHE A. KAMALASIRI K. D. RANASINGHE (On Release) S. S. RATNAYAKE

5 DEPARTMENTAL HEADS Bank Supervision Department MRS. T. M. J. Y. P. FERNANDO - Director S. K. RANASINGHE - Additional Director Centre for Banking Studies C. P. A. KARUNATILAKE - Director T. D. H. KARUNARATNE - Additional Director Communications Department S. J. A. HANDAGAMA - Director Currency Department J. P. R. KARUNARATNE - Superintendent MRS. H. P. T. WIJESURIYA - Additional Superintendent MISS. S. H. GUNAWARDENA - Additional Superintendent Domestic Operations Department R. A. A. JAYALATH - Director D. A. G. K. WIJETUNGA - Additional Director Economic Research Department MRS. S. GUNARATNE - Director MRS. Y. M. INDRARATNE - Additional Director D. KUMARATUNGE - Additional Director Employees Provident Fund Department MRS. K. GUNATILAKE - Superintendent MRS. C. M. D. N. K. SENEVIRATNE - Additional Superintendent L. D. D. Y. PERERA - Additional Superintendent Exchange Control Department P. H. O. CHANDRAWANSA - Controller R. R. JAYARATNE - Additional Controller Finance Department M. I. SUFIYAN - Chief Accountant P. V. L. NANDASIRI - Additional Chief Accountant Financial Intelligence Unit D. M. RUPASINGHE - Director D. K. WIJESURIYA - Additional Director Financial Stability Studies Department MRS. K. M. A. N. DAULAGALA - Director H. P. G. S. RATNASIRI - Additional Director

6 Governor s Secretariat Department MRS. K. DASSANAYAKE - Director T. M. Z. MUTALIPH - Additional Director Human Resources Department A. R. K. WIJESEKERA - Director W. R. A. DHARMARATNE - Additional Director Information Technology Department MRS. R. A. S. M. DAYARATNE - Director C. B. PATHBERIYA - Additional Director International Operations Department H. A. KARUNARATNE - Director A. A. M. THASSIM - Additional Director C. N. WIJAYASEKERA - Additional Director Management Audit Department A. M. N. GUNAWARDANA - Director Payments and Settlements Department MRS. R. B. WEERASINGHE - Director A. J. L. PEIRIS - Additional Director Policy Review and Monitoring Department P. W. D. N. R. RODRIGO - Director V. BASKARAN - Additional Director Facilities Management Department U. H. E. SILVA - Director H. SRIYARATNE - Additional Director Provincial Offices Monitoring Department H. AMARATHUNGA - Director Public Debt Department N. W. G. R. D. NANAYAKKARA - Superintendent and Registrar MRS. U. L. MUTHUGALA - Additional Superintendent Regional Development Department M. J. S. ABEYSINGHE - Director M. S. K. DHARMAWARDANE - Additional Director A. M. R. K. ATTANAYAKE - Additional Director Secretariat Department D. WASANTHA - Secretary B. W. JINASENA - Additional Secretary

7 Security Services Department S. WANIGASEKERA - Director B. L. J. S. BALASOORIYA - Additional Director (On Study Leave) Statistics Department MISS. K. SARAVANAMUTTU - Director T. H. B. SARATHCHANDRA - Additional Director Supervision of Non-Bank Financial Institutions Department H. M. EKANAYAKE - Director H. B. D. KARUNARATNA - Additional Director MRS. N. H. E. R. SIRIWARDHANA - Additional Director Welfare Department E. A. HETTIARACHCHI - Director T. W. ARIYARATNE - Additional Director AUDITOR H. A. S. SAMARAWEERA Auditor-General

8 CONTENTS PART I Page 1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES 1.1 Overview Macroeconomic Developments, Stability and Policy Responses in Real Sector Developments... 7 External Sector Developments Fiscal Sector Developments Monetary Sector Developments Financial Sector Developments Global Economic Environment and Outlook Medium Term Macroeconomic Outlook NATIONAL OUTPUT AND EXPENDITURE 2.1 Overview Sectoral Output, Policies, Institutional Support and Issues 38 Agriculture 38 Export Agriculture 40 Domestic Agriculture 42 Fishing 44 Livestock 45 Forestry 46 Agricultural Policies and Institutional Support 46 Industry 49 Mining and Quarrying 49 Manufacturing 50 Processing 50 Factory Industry 50 Industry Policies and Institutional Support 53 Cottage Industry 57 Electricity, Gas and Water 57 Construction 57 Services 58 Wholesale and Retail Trade 58 Hotels and Restaurants 59 Transport and Communication 59 Banking, Insurance and Real Estate 60 Government Services 61 Private Services Expenditure 61 Consumption 61 Investment 63 Availability and Utilisation of Resources 65 Savings ECONOMIC AND SOCIAL INFRASTRUCTURE 3.1 Overview Economic Infrastructure Policies, Institutional Framework and Performance 69 Communication Services 69 Energy 73 Electricity 74 Petroleum 76 Oil Exploration Transportation 79

9 Page Road Development Road Passenger Transportation Railway Transportation 81 Civil Aviation 83 Port Services Water Supply and Irrigation Social Infrastructure Policies, Institutional Framework and Performance 87 Health 87 Education 89 Housing and Urban Development 91 Safety Nets and Poverty Alleviation 92 Environment PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY 4.1 Overview Prices 98 Price Movements and Contributory Factors 98 Colombo Consumers Price Index (CCPI) 98 Wholesale Prices Index (WPI) 102 GDP Deflator Wages 103 Public Sector Wages 104 Formal Private Sector Wages 104 Informal Private Sector Wages Population, Labour Force and Employment 106 Population 106 Labour Force 107 Employment 110 Unemployment 111 Foreign Employment 112 Labour Productivity 113 Labour Relations 116 Labour Market Reforms EXTERNAL SECTOR DEVELOPMENTS AND POLICIES 5.1 Overview External Trade Policies and Institutional Support Trade in Goods, Trade Balance, Terms of Trade and Direction of Trade 124 Export Performance 124 Import Performance 126 Trade Balance 129 Terms of Trade 129 Direction of Trade Trade in Services, Income, Current Transfers and Current Account Balance 131 Trade in Services 131 Transportation Services 131 Travel and Tourism 132 Communication and Computer and Information Services 134 Inflows and Outflows of Income 135 Current Transfers 135 Current Account Balance Capital and Financial Flows and Balance of Payments 136 Foreign Direct Investment 136 Medium and Long-term Capital Flows to the Government 137 Investment in Government Securities 137 Long-term Capital Flows to the Private Sector and State-Owned Enterprises 138 Short-term Capital to the Private Sector and Public Corporations 138 Commercial Banks 138 Balance of Payments 138 International Reserves 139

10 5.6 Sovereign Ratings, External Debt and Debt Servicing 140 Sovereign Ratings 140 External Debt 143 Foreign Debt Service Payments Exchange Rate Policy and Exchange Rate Movements 145 Nominal and Real Effective Exchange Rates 146 Developments in the Domestic Foreign Exchange Markets FISCAL POLICY AND GOVERNMENT FINANCE 6.1 Overview Fiscal Policy Direction and Measures Government Budgetary Operations 154 Revenue and Grants 154 Revenue 154 Grants 157 Expenditure and Net Lending 157 Financing the Budget Deficit Government Debt and Debt Service Payments 163 Government Debt 163 Debt Service Payments Budgetary Operations in Sub National Governments Policy Direction and Measures of Sub National Governments 167 Budgetary Operations in Provincial Councils 168 Consolidated General Government Budgetary Operations MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES 7.1 Overview Monetary Policy Developments in Money and Credit 174 Money Market Liquidity 174 Reserve Money 175 Narrow Money (M 1 ) 177 Broad Money (M 2b ) 177 Broad Money (M 4 ) Interest Rates 182 Money Market Rates 182 Deposit and Lending Rates 183 Yield Rates on Government Securities 185 Yield Rates on Corporate Debt Securities Future Developments, Challenges and Outlook FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY 8.1 Overview Performance of Financial Institutions 189 Banking Sector 189 Business Expansion 189 Assets and Liabilities 189 Risk Management 190 Resources 195 Non-Bank Financial Institutions Sector 196 Business Expansion 197 Assets and Liabilities 197 Risk Management 198 Resources 199 Primary Dealers in Government Securities 202 Risk Management 202 Market Participation 203 Unit Trusts 203 Insurance Companies 204 Page

11 Superannution Funds Performance of Financial Markets 207 Money Market 207 Domestic Foreign Exchange Market 208 Government Securities Market 208 Corporate Debt Securities Market 209 Commercial Paper 209 Corporate Bonds 210 Equity Market Development Finance and Access to Finance Financial Infrastructure Payment and Settlement Systems 213 Credit Information 217 PART II ACCOUNTS AND OPERATIONS OF THE CENTRAL BANK OF SRI LANKA 1-94 PART III MAJOR ADMINISTRATIVE MEASURES ADOPTED BY THE MONETARY BOARD IN PART IV MAJOR LEGISLATIVE ENACTMENTS OF 2012 RELATING TO THE FUNCTIONS AND OPERATIONS OF THE CENTRAL BANK AND BANKING INSTITUTIONS IN SRI LANKA 1-32 STATISTICAL APPENDIX SPECIAL STATISTICAL APPENDIX Page

12 PART I TABLES Page 1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES 1.1 Gross National Product by Industrial Origin at Constant (2002) Prices Aggregate Demand and Savings Investment Gap External Sector Developments Global Economic Developments and Outlook Medium-term Macroeconomic Framework NATIONAL OUTPUT AND EXPENDITURE 2.1 Sectoral Composition and Increase in Gross Domestic Product by Industrial Origin at Constant (2002) Prices Agriculture Production Index ( =100) Trends in Principal Agricultural Crops Paddy Sector Statistics Fish Production Livestock Sector Statistics Industrial Production Index (IPI) Aggregate Demand Composition of Private Consumption Expenditure at Current Market Prices Investment and Employment in Enterprises Registered under Board of Investment of Sri Lanka (BOI) and Ministry of Industry and Commerce (MIC) Total Resources and Their Uses at Current Market Prices Consumption, Investment and Savings at Current Market Prices ECONOMIC AND SOCIAL INFRASTRUCTURE 3.1 Government Investment in Infrastructure Growth of Telecommunications and Postal Services Power Sector Performance Petroleum Sector Performance Salient Features of the Transport Sector Performance of Port Services Water Supply by National Water Supply and Drainage Board Salient Features of Health Services Salient Features of General and University Education Samurdhi Welfare Programme - Number of Beneficiary Families and Value of Grants PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY 4.1 Changes in Price Indices Retail Prices of Key Imported and Domestically Produced Items Revisions to Key Items with Administered Prices Sectoral Deflators and GDP Deflator Wage Rate Indices Informal Private Sector Daily Wages by Sector and Gender District-wise Population and Density Household Population, Labour Force and Labour Force Participation Employment by Economic Activity

13 4.10 Status of Employment Public Sector Employment Unemployment Rate (Unemployed as a percentage of Labour Force) Departures for Foreign Employment Foreign Employment Departures by Destination Labour Productivity by Major Economic Sector Strikes in Private Sector Industries EXTERNAL SECTOR DEVELOPMENTS AND POLICIES 5.1 Balance of Payments Analytical Presentation Composition of Exports Composition of Imports Volume of Major Imports Trade Indices Net Services, Income and Current Transfers Tourism Performance Major Projects Financed with Foreign Borrowings during International Reserves of Sri Lanka Disbursement Details of the IMF-SBA Facility Sri Lanka s Sovereign Credit Rating and Country Outlook Outstanding External Debt and Banking Sector External Liabilities External Debt Service Payments Exchange Rate Movements FISCAL POLICY AND GOVERNMENT FINANCE 6.1 Summary of Government Fiscal Operations Economic Classification of Revenue Economic Classification of Expenditure and Lending Minus Repayments Functional Classification of Expenditure Sources of Domestic Financing Outstanding Government Debt (as at end year) Assessment of External Debt Vulnerability of Sri Lanka Government Debt Service Payments Government Debt Indicators Budget Outturn for Provincial Councils MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES 7.1 Recent Monetary Policy Measures Developments in Monetary Aggregates Sources of Reserve Money and Broad Money (M 2 b) Classification of Loans and Advances granted by Commercial Banks Maturity Analysis of Outstanding Credit to the Private Sector by Commercial Banks Sources of Broad Money (M 4 ) Selected Money Market Rates Deposit and Lending Rates Yield Rates on Government Securities 185 Page 8. FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY 8.1 Total Assets of the Major Financial Institutions Distribution of Banks and Bank Branches Composition of Assets and Liabilities of the Banking Sector

14 Page 8.4 Composition of Statutory Liquid Assets of the Banking Sector Profit of the Banking Sector Composition of Regulatory Capital of the Banking Sector Distribution of Branches of NBFIs by Province Composition of Assets and Liabilities of the NBFI Sector Composition of Income and Expences of the NBFI Sector Composition of Regulatory Capital of the NBFI Sector Performance of Primary Dealers Performance of the Unit Trust Sector Performance of the Insurance Sector Performance of EPF and ETF Money Market Transactions Market Yield Rates of Government Security Performance of the Share Market Transactions through Payment Systems

15 PART I CHARTS Page 1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES 1.1 Annual Real GDP Growth Rate ( ) Year-on-year Inflation (Based on CCPI, Spliced) Annual Unemployment Rate ( ) Savings and Investment (as a Percentage of GDP) Year-on-year Inflation (Based on CCPI: 2006/07=100) Balance of Payments Revenue, Expenditure and Overall Fiscal Deficit (as a percentage of GDP) Government Debt (as a percentage of GDP) Policy Interest Rate Corridor and Selected Market Interest Rates Year-on-year Growth of Money and Credit to Private Sector NATIONAL OUTPUT AND EXPENDITURE 2.1 Annual Growth Rate Rice: Supply and Demand Industrial Production Index Composition of Industrial Production Investment in Approved and Contracted BOI Projects (Including Projects Expanded) Number of Projects Value of Investment The Economy in 2012 (at current prices) Supply of Goods and Services 65 Demand for Goods and Services ECONOMIC AND SOCIAL INFRASTRUCTURE 3.1 Telephone Density Average Tariff and Cost of Electricity International Crude Oil (Brent) Prices (Monthly Average) 2011/ Volume of Container Handling and Transshipments Government Expenditure on Health and Education Number of Samurdhi Beneficiary Families and Expenditure PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY 4.1 Colombo Consumers Price Index (2006/07=100) Trends in Labour Force and Unemployment EXTERNAL SECTOR DEVELOPMENTS AND POLICIES 5.1 Balance of Payments Major Sources of Foreign Exchange Earnings Exports by Commodities Imports by Commodities Exports, Imports and the Trade Balance Terms of Trade and Trade Indices Exports by Destinations Imports by Origin Tourist Arrivals in 2012 by Country Tourist Arrivals and Earnings From Tourism 134

16 Page 5.11 Inflows to the Capital and Financial Account Quarterly International Reserves (Incuding ACU balances) External Debt Exchange Rate Movements Exchange Rate Movement - Rupees per US $ 146 Effective Exchange Rate Indices: 24-currency (2010=100) Quarterly Inter-Bank Forward Transaction Volumes FISCAL POLICY AND GOVERNMENT FINANCE 6.1 Major Fiscal Indicators (as a percentage of GDP) Composition of Government Revenue Composition of Government Current Expenditure Total Expenditure by Function Deficit Financing (as a percentage of GDP) Sources of Bank Financing Outstanding Government Debt Composition of Outstanding Domestic Debt Composition of Outstanding Foreign Debt Currency Composition of Total Outstanding Debt Government Debt Service Payments (as a percentage of GDP) MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES 7.1 Policy Interest Rate Cycles Overnight Rupee Liquidity in the Domestic Money Market ( ) Year-on-Year Growth of Monetary Aggregates Annual Increase in Domestic Credit ( ) Volume and Growth of Loans and Advances granted to the Private Sector by Commercial Banks Year-on-Year Growth of Outstanding Credit to Key Sectors (%) Year-on-Year Growth of Credit Extended to the Private Sector Year-on-Year Growth of Savings and Time Deposits Average Weighted Call Money Rate and Policy Interest Rates Movement of Selected Market Interest Rates Average Weighted Lending Rates by Type of Security (%) Secondary Market Yield Curve for Government Securities FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY 8.1 Off Balance Sheet Exposure of the Banking Sector Non-Performing Loans of the Banking Sector Provisions for NPLs of the Banking Sector Sector-wise Credit Exposure of the Banking Sector Liquidity Ratios of the Banking Sector Cumulative Maturity Gap-% of Cumulative Liabilities of the Banking Sector Profitability Indicators of the Banking Sector Capital Adequacy Ratios of the Banking Sector Product-wise Accommodations of the NBFI Sector Non-Performing Accommodations and Provisions Coverage of the NBFI Sector Profitability Indicators of the NBFIs Sector ASPI, MPI and Market Capitalisation of the CSE Turnover and Foreign Participation at the CSE 211

17 PART I - BOXES Page 1. Bridging the Savings-Investment Gap to Sustain High Economic Growth in Sri Lanka 5 2. Challenges in Increasing the Per Capita Income Beyond USD 4, The Divi negum National Programme: The National Drive to Create Prosperous Village with Healthy and Economically Empowered Households Developing Technology Business Incubators for a Technopreneurial Culture Mobile Communication Technology towards Economic Growth Solid Waste Management Economic Implications of the Age Structure Transition of the Population Skills and High Quality Human Capital for Sustainable Growth A New Approach for Assessing the International Reserve Adequacy Interconnectedness of Financial Institutions and Systematic Risk Consequences of Unauthorised Finance Business The Clean note policy Major Economic Policy Changes and Measures STATISTICAL APPENDIX Table NATIONAL OUTPUT AND EXPENDITURE Gross National Product by Industrial Origin at Current Prices of Major Economic Activities 1 Gross National Product by Industrial Origin at Constant (2002) Prices of Major Economic Activities 2 Gross National Product by Industrial Origin of Major Economic Activities 3 Provincial Gross Domestic Product by Industrial Origin at Current Prices ( ) 4 Resources and their Utilisation 5 Reconciliation of Key Aggregates at Current Market Prices 6 Gross Domestic Capital Formation at Current Market Prices 7 Composition of Private Consumption Expenditure at Current Market Prices 8 Expenditure on Gross National Product at Current Market Prices 9 Gross Domestic Expenditure and Availability of Resources 10 Investment and Savings at Current Market Prices 11 Real National Income 12 Trends in Principal Agricultural Crops 13 Production of Tea, Rubber, Coconut and Other Export Agriculture Crops 14 Annual Rainfall and Rainy Days 15 District-wise Performance of the Paddy Sector 16 Paddy Production 17 Performance of Other Field Crops 18 Statistics of the Sugar Sector 19 Statistics on the Forestry Sector 20 Value Added in Industry (2002 Constant Prices) 21 Value Added in Industry (Current Prices) 22 Investment Approvals in Industry by the Board of Investment of Sri Lanka 23 Realised Investments in the Board of Investment (BOI) Enterprises 24 Capacity Utilisation in Industry 25 Employment in Selected State Owned Enterprises 26

18 Table Performance of Selected State Owned Enterprises 27 Regional Distribution of Industrial Enterprises 28 Industrial Production Index (IPI) of Major Divisions 29 Industiral Production Index 30 ECONOMIC AND SOCIAL INFRASTRUCTURE Salient Features of Government Health Services 31 Salient Features of General and University Education 32 Telecommunications and Postal Services 33 Energy Sector Performance 34 Salient Features of the Transport Sector 35 Performance of the Port Services 36 Land Cultivated under the Mahaweli Development Programme 37 PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY Movement of the Colombo Consumers Price Index (CCPI) (2002=100) 38 Movement of the Colombo Consumers Price Index (CCPI) (2006/07=100) 39 Colombo Consumers Price Index (CCPI) (2002=100) 40 Colombo Consumers Price Index (CCPI) (2006/07=100) 41 Wholesale Price Index (WPI) 42 Average Retail Prices of Selected Food Items by Province Wholesale Prices of Selected Commodities 44 Wage Rate Indices 45 Average Daily Wages in the Informal Sector 46 Average Daily Wages of Informal Sector by Province Demography 48 Population by District 49 Labour Force Participation Rate 50 Status of Employment 51 Employment by Economic Activity 52 Labour Force Trends 53 Public Sector Employment 54 Foreign Employment 55 Employees Provident Fund 56 Employees Trust Fund 57 Strikes in Private Sector Industries 58 EXTERNAL SECTOR DEVELOPMENTS AND POLICIES Central Bank Trade Indices Value 59 Central Bank Trade Indices Volume 60 Central Bank Trade Indices Unit Value 61 Foreign Trade 62 Exports 63 Tea Exports, Sales and Prices 64 Volume and Value of Tea Exports 65 Country Classification of Tea Exports 66 Rubber Exports and Prices 67 Major Rubber Export Destinations 68 Country Classification of Garment Exports 69 Major Coconut Products Exports and Prices 70

19 Table Volume and Value of Exports of Other Agricultural Products 71 Selected Industrial and Mineral Exports 72 Imports by Major Categories 73 Imports 74 Imports and Exports of Major Commodities 75 Direction of Trade - Exports 76 Direction of Trade - Imports Tourism Performance 78 Some Indicators of the Regional Distribution of the Tourist Trade 79 Balance of Payments 80 Balance of Payments - Standard Presentation under BPM A Services, Income and Transfers 81 Workers Remittances 82 External Resources and their Uses 83 Financing of the External Resources Gap 84 External Debt Outstanding and Banking Sector External Liabilities End of Period Exchange Rates 86 Average Exchange Rates of Major Currencies and Monthly Indices of Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) Interbank Forward Market Transactions 88 Absorption and Supply of Foreign Exchange by the Central Bank 89 FISCAL POLICY AND GOVERNMENT FINANCE Summary of Government Fiscal Operations 90 Government Revenue 91 Payments of the Government of Sri Lanka 92 Voted Expenditure of the Government of Sri Lanka Voted Expenditure of the Government of Sri Lanka Current Transfers to Public Corporations and Institutions 95 Capital Transfers to Public Corporations and Institutions 96 Acquisition of Financial Assets (Loan Outlays) 97 Financing of the Government Net Cash Deficit 98 Economic Classification of Government Revenue 99 Economic Classification of Government Expenditure and Lending Minus Repayments 100 Economic Classification of Government Fiscal Operations 101 Composition of Outstanding Government Debt 102 Ownership of Government Debt (as at end of the year) 103 Ownership of Treasury Bills 104 Ownership of Treasury Bonds 105 Ownership of Rupee Loans 106 Ownership of Outstanding Foreign Debt 107 Foreign Loans Net Receipts of Foreign Assistance 109 Outstanding Central Government Debt (as at end of the year) 110 Budget Outturn for Provincial Councils 111 Consolidated Budget 112 MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES Currency Issued by the Central Bank (by Denomination) 113 Monetary Aggregates M 1 and M 2 114

20 Monetary Survey M Consolidated Monetary Survey M 2b 116 Financial Survey M Monetary Aggregates - Summary 118 Reserve Position of Commercial Banks 119 Money Rates : The Central Bank and Commercial Banks 120 Money Rates: Savings and Long Term Credit Institutions 121 Yield Rates on Government Securities 122 Commercial Banks Loans and Advances by Type of Security (End of Period) 123 Commercial Banks Loans and Advances to the Private Sector 124 FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY Assets and Liabilities of the Central Bank 125 Assets and Liabilities of Domestic Banking Units (DBUs) of Commercial Banks 126 Assets and Liabilities of Offshore Banking Units (OBUs) of Commercial Banks 127 Assets and Liabilities of Non-Bank Financial Institutions 128 Savings and Fixed Deposits of Deposit-taking Institutions 129 Insurance Activities 130 Share Market Performance 131 Debentures Listed on the CSE in Total Cultivation Loans Granted by the Lending Banks (position as at 31 December 2012) 133 New Comprehensive Rural Credit Scheme Loans Granted for Subsidiary Food crops by the Leading Bank (Poition as at 31 December 2012) 134 Operations of the Crop Insurance Programme Paddy Sector (Position as at 31 December 2012) 135 Deposits and Advances of District Co-operative Rural Banks ( ) and District-wise Classification for Deposits and Advances of District Co-operative Rural Banks Unions ( ) and District-wise Classification for

21 SPECIAL STATISTICAL APPENDIX Table 1. Real Sector: Population and Labour Force... 1 National Output and Prices External Sector: Balance of Payments... 3 International Reserves, External Debt and Exchange Rates Fiscal Sector: Government Fiscal Operations... 5 Government Debt Financial Sector: Monetary Survey... 7 Interest Rates Socio-economic Conditions: /10 Key Socio-economic Indicators in Sri Lanka Key Socio-economic Indicators by Province Key Socio-economic Indicators by Sector