Front Matter Page

© 2002 International Monetary Fund

May 2002

IMF Country Report No. 02/104

SRI LANKA: Report on the Observance of Standards and Codes—Data Module; Response by the Authorities; and Detailed Assessments Using the Data Quality Assessment Framework

This Report on the Observance of Standards and Codes on Data Module for Sri Lanka was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on December 13, 2001. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Sri Lanka or the Executive Board of the IMF.

The Response by the Authorities on this report, and the Detailed Assessments Using the Data Quality Assessment Framework (DQAF) are also included.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to Publicationpolicy@imf.org.

International Monetary Fund

Washington, D.C.

Front Matter Page

INTERNATIONAL MONETARY FUND

SRI LANKA

Report on the Observance of Standards and Codes (ROSC) Data Module

Prepared by the Statistics Department

Approved by Carol S. Carson and Yusuke Horiguchi

December 13, 2001

Contents

• Acronyms

• Executive Summary

• I. Introduction

• II. Data Dissemination Practices and the SDDS

  • A. Overview of the SDDS

  • B. Current Dissemination Practices

    • Access dimension

    • Integrity dimension

    • Quality dimension

• III. Summary Assessment of Data Quality

  • A. The Framework for Assessing Data Quality

  • B. Summary Findings

    • Prerequisites of Quality

    • Integrity

    • Methodological Soundness

    • Accuracy and Reliability

    • Serviceability

    • Accessibility

• IV. Users’Views

• V. Fund Staff Recommendations

  • • National accounts

    • Consumer price index

    • Producer price index

    • General government finance statistics

    • Monetary statistics

    • Balance of payments statistics

• Boxes

• 1. Dimensions and Elements of the Special Data Dissemination Standard (SDDS)

• Text Tables

• 1. Sri Lanka: Overview of Current Practices regarding Coverage, Periodicity, and Timeliness of Data Compared to the SDDS

• 2.a. Data Quality Assessment Framework—Summary for National Accounts Statistics

• 2.b. Data Quality Assessment Framework—Summary for Consumer Price Index

• 2.c. Data Quality Assessment Framework—Summary for Producer Price Index

• 2.d. Data Quality Assessment Framework—Summary for Government Finance Statistics

• 2.e. Data Quality Assessment Framework—Summary for Surveys of the Central Bank and Depository Corporations

• 2.f. Data Quality Assessment Framework—Summary for Balance of Payments Statistics

Foreword

The data module of the Report on Observance of Standards and Codes (ROSC) has evolved significantly since its inception in early 1999. The early ROSCs focused on the disclosure elements of the international standard—that is, the requirements to make information available to the public. However, experience showed that the reports would be more useful if they also addressed the quality of the information provided. This need to focus on the quality of data more broadly is addressed by integrating an assessment methodology developed by the Statistics Department—the Data Quality Assessment Framework (DQAF)—into the structure of the ROSC.

The DQAF is a methodology for assessing data quality that brings together best practices and internationally accepted concepts and definitions in statistics, including those of the United Nations Fundamental Principles of Official Statistics and the Special Data Dissemination Standard (SDDS). The DQAF methodology aims to provide structure and a common language for the assessment of data quality. It facilitates a comprehensive view of data quality, one that recognizes interrelations, including tradeoffs, among elements of quality and allows emphasis to vary across data categories and uses/users. It facilitates dialogue with national statistical agencies and country authorities, more generally.

Integration of the DQAF within the ROSC is only one of the potential uses of this assessment methodology. It can also be used to help guide data users to gauge data quality for their own purposes, it can be useful to guide countries’ efforts to strengthen their statistical systems by providing a self-assessment tool, and it can be used as a diagnostic tool for technical assistance and statistical capacity building.

Acronyms

EXECUTIVE SUMMARY

This report is a summary assessment of Sri Lanka’s data dissemination practices against the IMF’s Special Data Dissemination Standard (SDDS), complemented by an in-depth assessment of the elements of data quality that underlie the national accounts, prices, government finance, monetary, and balance of payments statistics. Sri Lanka’s statistical agencies, that produce these statistics are the Central Bank of Sri Lanka (CBSL), the Ministry of Finance and Planning (MOFP), and the Department of Census and Statistics (DCS). The Sri Lanka authorities have expressed a desire to subscribe to the SDDS as soon as possible. This assessment was carried out by a mission that visited Colombo during June 7-22, 2001.¹

The mission concluded that:

• SDDS observance: Sri Lanka has made good progress in meeting most of the SDDS specifications on coverage, periodicity, and timeliness of data categories. Shortcomings exist in the access, integrity, and quality dimensions compared with the SDDS.

• Prerequisites of quality: The statistical agencies have a legal foundation and institutional framework that fosters quality. However, a rationalization of responsibilities for consumer price indices and national accounts is needed. Moreover, the routine independent evaluation of quality indicators could strengthen statistical processes.

• Integrity: All agencies demonstrate professionalism, are generally transparent in their practices and policies, and provide ethical guidelines to their staffs. Nonetheless, the provision of advance notice to users in the event of key statistical changes is required.

• Methodological soundness: Improvements could be made in all statistical programs starting with the implementation of the 1993 SNA. The scope and weights of the price indices are in need of review. Enhancements are also needed in monetary, balance of payments and government finance statistics in line with new international guidelines.

• Accuracy and reliability: Strengthened source data and statistical techniques would benefit datasets. Also, the establishment of revision studies and analyses are needed.

• Serviceability: Most data are relevant, timely, and consistent with the SDDS periodicity. However, ongoing consultations are needed with data users.

• Accessibility: More comprehensive and easily accessible metadata are needed to facilitate understanding and data analysis. There is a complementary need to establish and publicize advance release calendars for all datasets to ensure data timeliness.

Front Matter Page

INTERNATIONAL MONETARY FUND

SRI LANKA

Report on the Observance of Standards and Codes (ROSC)—Data Module Response by the Authorities

December 13, 2001

Content

• I. Reactions from the Sri Lankan Authorities on Fund Staff Recommendations

  • A. National Accounts

  • B. Consumer price index

  • C. Producer Price Index

  • D. General Government Finance Statistics

  • E. Monetary Sector

  • F. Balance of payment statistics

Front Matter Page

INTERNATIONAL MONETARY FUND

SRI LANKA

Detailed Assessments Using the Data Quality Assessment Framework

Prepared by the Statistics Department

Approved by Carol S. Carson and Yusuke Horiguchi

December 13, 2001

Contents

• I. National Accounts Estimates (Annual and Quarterly)

• II. Consumer Price Index

• III. Produce Price Index (PPI)

• IV. Government Finance Statistics

• V. Monetary Statistics

• VI. Balance of Payment Statistics

Appendices

• I. Data Quality Assessment Framework—Generic Framework

• II. Letter from the Senior Resident Representative in Sri Lanka to Survey Participants

• III. Short Questionnaire for Users of Sri Lanka’s Economic Data