Cabinet nod to change GDP base year to 2015

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As Finance Today exclusively reported last week,Cabinet has approved to change the base year for gross domestic product (GDP) calculations from 2010 to 2015, Cabinet spokesman Minister Bandula Gunewardena said yesterday (31 May).

“The Cabinet of Ministers had given the go ahead to publish the revised GDP numbers accordingly,” he said.

The Department of Census and Statistics updates the base year of National Accounts Estimation every five years taking in to account the facts such as, accurate identification of the real structure of the economy, more accurate estimation of the values of economic growth rate, adaptation to the new recommendations and procedures put forward by the relevant international bodies on national accounts.

Accordingly, it has been decided to use the year 2015 as the new base year instead of the year 2010 which is currently based on the preparation of national accounts.

The Department of Census and Statistics has prepared quarterly and annual National Accounts Estimates for the period 2015 to 2021 using the base year 2015.

The Cabinet of Ministers approved the proposal made by the Minister of Finance to publish those reports and to issue National Accounts Estimates under the new base year 2015 from the first quarter of 2022 onwards, he said.

By Ishara Gamage