Access dimension

9. The CBSL does not at present issue Advance Release Calendars (ARCs) for the release of its weekly and monthly data. However, its Annual Report, by law, has to be published within four months from the end of the reference year. As all CBSL data series are produced under specific schedules, it is feasible to disseminate ARCs. The CBSL data are released to users through press releases, publications, and posting on the Internet. The DCS has no ARC for price statistics. However, there is a legal requirement to publish the official CPI (CCPI) on the last day of the reference month. Data published by the DCS are released via press releases, publications and on its website.

Integrity dimension

10. The SDDS requires the disclosure of information on laws, regulations and decrees, etc. that govern the collection, compilation and dissemination of data, as well as the confidentiality of the data collected. The terms and conditions under which most official statistics are compiled and disseminated in Sri Lanka are governed by the Monetary Law Act (MLA), the Statistical Ordinance, and the Census Ordinance. These are available to the public in electronic and non-electronic formats; they provide a legal framework, with appropriate responsibilities and corresponding penalties, that supports the integrity of the statistical system.

11. The DCS releases the official CPI (CCPI) through press releases simultaneously to all users. However, for other statistics, the DCS automatically provides finalized data to government users before publication, but will also supply these data to other users on request, and the public is not informed of this practice. The CBSL and the MOFP do not provide data to government officials before their public release, and data are disseminated without ministerial commentary. All the statistical agencies do not provide advance notification of major changes in methodology, source data, and statistical techniques. In many cases involving major changes in methodology, however, released data are accompanied by a detailed technical commentary in statistical publications.

Quality dimension

12. The SDDS requires dissemination of documentation on methodology and sources, as well as component detail, reconciliations with related data, and statistical frameworks that support statistical cross-checks and provide assurance of reasonableness. Summary methodology statements and statistical techniques for the data published by CBSL, the MOFP, and the DCS are outdated, limited in coverage, and unavailable to the public for most data sets. Plans are underway at CBSL to either update or create publicly accessible metadata in the near term.

Prerequisites of Quality

18. The DCS prepares the annual national accounts, the official CPI, called the Colombo CPI (CCPI), as well as the Greater Colombo CPI (GCPI) (which has slightly larger geographical coverage and more up-to-date weights). The responsibility to compile national accounts is not clearly specified and the CBSL also produces annual and quarterly national accounts. This results in duplication of efforts by the two agencies The DCS has the legal obligation, under the Statistics Ordinance, to produce CPIs. However, the CBSL also produces a Colombo District CPI (CD-CPI) as well as a producer price index (PPI). This also results in a significant duplication of activities in prices. Both organizations also operate independent household income and expenditure surveys, which are used to derive the weights for the various CPIs. The resources within the DCS are adequate to meet the existing work program. The management of DCS has a positive attitude towards quality, but the organization does not have formal quality assessment programs, and does not conduct regular meetings with users to discuss their needs.

19. The CBSL produces and disseminates statistics under the provisions of Section 35 of the MLA (Monetary Law Act), which stipulates that the CBSL submit to the Minister of Finance and Planning, and publish in its Annual Report, a range of economic statistics including monetary, balance of payments, and government finance statistics (GFS). The MLA empowers the CBSL to collect data needed to carry out its mandate, which the CBSL uses to justify the compilation of prices and national accounts. The MLA obligates financial institutions to provide data to the central bank and specifies penalties for noncompliance. Similar arrangements exist for providing data for balance of payments compilation. The CBSL has a workable framework for discussions with other data producing agencies such as the DCS and the General Treasury of the MOFP. Statutory requirements ensure that respondents’ data are kept confidential. Staff, financial, and computing resources appear adequate to undertake existing statistical programs and regular budgetary reviews focus on efficient resource allocation. Overall, the a perspective obtained perhaps by a public body outside the CBSL, for reviewing data quality indicators would buttress the overall reputation of the compilation agency.

20. The MOFP and the CBSL work together closely to collect, compile, and disseminate the GFS. The CBSL, mandated with the debt management responsibility for central government, is required by law to collect and disseminate GFS. The MOFP, the source of most transaction data on the budgetary central government, has an inadequate accounting system for recording (cash or accrual) data, and its compilation procedures, conducted manually, are not sufficient for ensuring accurate data. Staff is not adequately trained in the new GFS methodology, which concerns the compilation of complete balance sheets as well as transactions based on accrual accounting. Quality processes are primarily driven by the accuracy required under budget reporting systems, to ensure accurate and internally consistent fiscal data at all levels of government. The review of fiscal data quality, however, is not seen as a routine and timely process.

Integrity

21. Practices are in place at the CBSL, DCS, and the MOFP to help ensure professionalism in statistical policies and practices, transparency, and ethical standards. The documentation on the legal basis under which the CBSL and DCS operate is available publicly. Both organizations operate in a largely autonomous fashion, though this is not formally established. The CBSL compiles statistics on an impartial basis and the staff is free to choose the most appropriate data sources and methods. The DCS, however, has not been able to update the weights for the CCPl, which relate to 1949/50, even though they have made numerous attempts to do so, due to pressures from some influential quarters. All agencies scrutinize all media comments on their statistics and follow up on any observed instances of misrepresentation. Documented guidelines of the MOFP call for the proper use of data sources in compiling GFS. None of the compiling agencies give advance notification of major changes in methodology, source data, and statistical techniques. The CBSL does not allow, pre-release access to senior government officials. The DCS does not allow pre-release access to government officials for the CCPI but for other statistics, the DCS automatically provides finalized data to government users before publication but will also supply these data to other users on request, although the public is not informed of this practice. All CBSL’s staff are subject to the code of conduct and ethical standards for staff clearly specified in the CBSL’s Handbook/Manual. The CBSL and DCS’s training programs for new staff cover the required ethical standards.

Methodological Soundness

22. The overall structure of the national accounts³ generally follows the System of National Accounts 1968 (1968 SNA). No specific plan exists for implementing the 1993 SNA. The delineation of the economy and the production and asset boundary are, in principle, in line with the 1968 SNA. Although the International Standard Industrial Classification of all Activity, Rev.2, is followed, other standard classifications are not used. Regarding valuation, no clear conceptual approach is followed, and the basis for valuation differs across economic activities. For example, gross value added is denoted as factor cost values, manufacturing output is valued at ex-factory prices, while agricultural output is valued at producer prices.

23. The CPIs measure the changes in price of a representative basket of goods and services purchased by the represented households and prices are actual transaction prices paid by consumers. The classifications of goods and services used in all CPIs are not compatible with current internationally recommended practices and the weights for the CPIs are extremely out of date. The scope of all the CPIs is restricted to the Colombo area and to households with the lowest 40-50 percent of income.

24. The PPI’s methodology, set up in 1974, was lost in a bomb blast and no attempt has been made to update this methodology. The prices collected represent transactions at producer prices. The scope and the classification of establishments of the PPI covers all domestic industrial activities, but it has not been updated since 1974. This means that the number of enterprises included has been reduced over the years as businesses have ceased to operate and no new enterprises have been added. Also, the PPI excludes free trade zones and bonded warehouses.

25. The classification and sectorization systems for government finance statistics align with internationally accepted guidelines. Concepts and definitions in the central government finance statistics generally follow the recommendations of the 1986 A Manual on Government Finance Statistics (GFSM). All transactions are valued at current market prices and are recorded on a cash basis. Transactions in foreign currency are converted to local currency using the exchange rate for the day on which they take place. Debt stocks are valued at face value, and those denominated in foreign currency are converted to a domestic currency basis using the mid-point exchange rate in the market at the end of the reporting period. The MOFP and the CBSL are addressing how to report GFS (and to provide more conventional fiscal presentations) in accordance with the new GFS methodology to be published by the IMF in 2001, which entails accrual accounting and completely integrated stocks and flows.

26. The analytical framework for compiling monetary statistics used by CBSL is based on the IMF’s Guide to Money and Banking Statistics in International Financial Statistics (draft, 1984). The coverage of the Consolidated Monetary Survey M2b, which is used for policy purposes, is not complete. It excludes positions of two categories of deposit-taking institutions, namely Licensed Specialized Banks and Finance companies (whose quasi-monetary liabilities were, at end-2000, approximately 22 percent of broad money in the more comprehensive Financial Survey (see below)). The institutional coverage and sectorization of the Financial Survey is more in line with the recommendations in the Guide and the Monetary and Financial Statistics Manual (MFSM). However, some deviations are apparent for example in the treatment of repurchase agreements, and restricted deposits. Valuation principles follow Sri Lanka Accounting Standards, but are not uniformly on a market or fair value basis, as recommended in the MFSM. Accrued amounts (except for overdrafts) are on separate accrual accounts rather than incorporated in the underlying instrument. Also unlike the experimental financial survey, the monetary and financial surveys in CBSL publications do not include the full range of instrument and sectors recommended in MFSM. However, the source data obtained through the collection system generally contain adequate detail on stocks, that may permit compilation of sectoral balance sheets and the sectoral surveys as presented in MFSM.

27. Sri Lanka’s balance of payments statistics are compiled in broad conformity with guidelines presented in the Balance of Payments Manual, Fifth Edition (BPM5). Resident institutional units are in line with BMP5 concepts of economic territory and residence; however, there are some exceptions. Transactions relating to construction services and reinvested earnings are not covered, and only partial data are available on communication, computer and information services, and compensation of employees. Some differences exist with BPM5 with regard to classification of transactions (e.g., imports are on a c.i.f. basis, and the classification of goods does not identify repair on goods). The classification and sectorization of the financial account are not in line with the standard components of BPM5. Transactions are recorded at market prices, and statistical techniques exclude valuation changes from measures of financial flows derived from changes in stock data for CBSL accounts, as called for in the BPM5. As the CBSL relies on the International Transactions Reporting System (ITRS) for a large part of its services, income, and capital and financial account data, the reported transactions are recorded on a cash, rather than accrual basis.

Accuracy and Reliability

28. The accuracy of the national accounts statistics suffers from lack of sufficient data sources and statistical techniques. Sri Lanka does not have periodic comprehensive benchmarks and a system for conducting regular annual establishment surveys. A statistical business register, which would serve as the main basis for conducting sample surveys, is not available. As a result, the few surveys that are conducted do not have good sample frames. Most of the data used for regular compilation are obtained on a timely basis. However, detailed data needed to measure both output and intermediate consumption are mostly unavailable or not collected. As a result, the estimates for gross valued added are prepared directly relying heavily on fixed ratios established for the 1996 base year, often with outdated studies or ad-hoc assumptions. Quarterly indicators are used for compiling quarterly value added estimates. Except for a few key activities, the quarterly data collection procedure is essentially ad hoc. The methodology for deriving GDP at constant prices is not satisfactory. Expenditure estimates are available only annually and rely mostly on commodity flow techniques. Wherever possible, estimates are validated and checked with other sources. Analysis of revisions is made as a part of compilation process.

29. The CPIs are unreliable due to outdated weights and limited coverage. However, data collection procedures and aggregation techniques are sound. The household expenditure surveys operated by the DCS and the CBSL are based on multistage probability sample designs. Both surveys are run every five years and provide detailed data on household consumption to derive the weights of the CPIs. As noted above, the weights for the CCPI have never been updated. Also, there is no laid down policy for updating the weights for the other two CPIs, which still relate to 1985/86 for the GCPI and 1996/97 for the CD-CPI.

30. The PPI weights still relate to 1974 and the basis of their derivation is not known. Price data are collected on a monthly basis from an outdated enterprise list. Though the enterprise list is never changed, products which cease to be produced are replaced with similar ones. There are no validation procedures for the source data and the PPI is never revised even though some price quotes are late in arriving.

31. With regard to government finance statistics, annual data on budgetary central government and provincial councils are reported separately. The reason is that the provincial council data do not include data on functional classifications. The data available by economic type of transaction on budgetary central government and provincial governments permit the consolidation of data on general government for inclusion in the GFS annual compilation cycles. Annual data on local governments, which comprise a small part of general government operations and are based on accrual accounting, are not routinely collected. The integrity of GFS, as related to other statistical areas, such as monetary data, is not routinely validated. There are incomplete explanations for divergences between fiscal and monetary statistics on government financing by banks. Accordingly, the associated steps needed to report reconciled statistics are not identified. In any event, the revisions of monthly and annual fiscal data are not routinely analyzed to assess the appropriate use of provisional data.

32. A comprehensive data collection program is in place for monetary statistics covering all deposit-taking institutions. Accounting records form the basis for the reported balance sheets and supplementary tables. The reported data cover a broad range of financial instruments and economic sectors. Moreover, the balance sheets generally contain sufficient detail for classifying assets and liabilities by financial instrument and by economic sector, as defined in the MFSM. Nevertheless, a review for consistency with its recommendations may yield enhancements; for example, by seeking a separate identification of securities and shares, households/individuals and private enterprises, and, to the extent possible, disaggregation of some "other" reported items, where they are relatively large. Procedures are in place for checking monetary data for internal consistency with other datasets. The timeliness of reporting to CBSL by banks by the 20th of the subsequent month is generally in line with the CBSL directives. Delays arise due to inadequate communication links between outlying bank branches and regional offices, so that comprehensive bank data are generally available within 4-6 weeks from the end of the month. Regional development banks’ and finance companies’ data are currently available 8-9 weeks and 7-8 weeks, respectively, after the end of the reference month because of compilation and communication problems.

33. Although a data collection system has been developed for balance of payments statistics, there are some weaknesses in source data, techniques, validation and revisions’ studies. For example, the ITRS and surveys do not cover all institutions, enterprise accounts with banks abroad, and non-cash transactions (e.g., intercompany accounts, reinvested earnings etc.). The CBSL has developed some statistical techniques (price/value analysis, trend analysis, and timing adjustments to trade statistics etc.) to improve the accuracy and reliability. Although some service items (transport, travel, and government) are compared with ITRS data, there is no systematic estimation of undercoverage, non-surveyed or nonrespondent components for survey data. The ITRS does not systematically require financial institutions to reconcile reported transactions data with stock data. Revision studies are not a regular procedure in data compilation. The Annual Report tries to determine major factors contributing to errors and omissions in the accounts, but it is not clear to what extent this information guides compilation policy, or is made available to guide users.

Serviceability

34. An informal mechanism is used to identify users’ needs, but explicit reviews or consultations are not conducted to monitor the relevance with respect to national accounts to the users. Periodicity and timeliness are in line with the SDDS. Although the time series are usually consistent over time it is not possible to analyze structural ratios because of limited data. Also, a proper reconciliation framework such as supply and use tables is not produced. The quarterly figures are made consistent with the annual estimates by simple proration of the differences between the sum of four quarters and independent annual values. The revision practice is reasonably consistent from year to year, but a revision calendar is not publicized. Preliminary data are indicated as such.

35. There is no systematic approach to assess the needs of users for either the PPI or the CPIs. Periodicity and timeliness of the CCPI and the CD-CPI are in line with the SDDS. The timeliness of the PPI does not meet the SDDS requirements. The CPIs and PPI are consistent over time. CCPI is not consistent with the other CPIs because of the outdated weights. No checks are made to ensure that movements in the PPI are consistent with that of other price indices.

36. The MOFP and the CBSL prepare comprehensive government finance statistics on an annual basis with a lag of two quarters. Budget management and accounting systems provide summary records of monthly budgetary central government transactions and debt in two months after the end of the reference month, as against the one month timeliness in the SDDS. Fiscal data for "other expenditure" of central government is calculated as a residual; they do not reflect actual data and thereby promote transparency. MOFP’s processes for gauging relevance and practical utility of its statistics in meeting users’ needs are limited, and no routine surveys or reviews of users take place. The procedure of reporting monthly fiscal data as soon as data are available is not documented and reported. GFS data are not reviewed adequately to ensure consistency with other data such as monetary data.

37. The CBSL assesses on an ongoing basis the analytical relevance of the monetary and statistical compilation methods for appropriately capturing macroeconomic, institutional and financial sector developments. Two major studies (in 1997 and in 1999) led to a revision in the coverage of monetary surveys and initiated publication of broader money aggregates (monthly M2b and annual M4, respectively). Data periodicity, but not the timeliness, follows the SDDS recommendations. Interbank positions among commercial banks, and data reported for statutory reserve purposes, show that there are no large variations among data. In particular, the CBSL has a policy for checking monetary data on net foreign assets and net claims on government for consistency with balance of payments and government finance statistics. The general CBSL policy is that major data revisions, arising from methodological changes, are first published in the CBSL’s Annual Report, along with extensive methodological commentary and background analysis on the factors that led to the revisions.

38. The CBSL organizes monthly meetings with banks to gauge users’ views about the usefulness of balance of payments. The statistics are disseminated on a quarterly basis with a two-month lag, that meets the periodicity and timeliness prescribed by the SDDS. Trade data also meet the SDDS periodicity and timeliness requirements. International reserves data are compiled and disseminated on a weekly basis with one week lag. Comprehensive external data are compiled on a yearly basis. The balance of payments statistics are generally consistent over time and with other datasets, although there is a variable errors and omissions item in the BOP statistics. When the CBSL implemented the BPM5 framework in 1997, the annual and quarterly data were revised and disseminated in the Annual Report, and on the CBSL’s website (including a comparison table with the old data). Revisions do not follow a regular schedule. The causes of the revisions are sometimes explained in the reports.

Accessibility

39. The dissemination of national accounts statistics is generally satisfactory. However, the quarterly GDP estimates are published by grouping all activities into five groups. Data are usually released on a regular basis, but advance notification of release dates is not practiced. Additional non-published detailed data are not provided due to concerns about the quality of the disaggregated data. Some internal documentation on sources and methods exists, but metadata on data compilation is not prepared for publication. A list of publications is included in most CBSL publications and at its website. A central contact point for users is available, but no specific contact point for national accounts is publicized.

40. There is no advance release calendar for price statistics. However, there is a legal requirement to publish the CCPI on the last day of the reference month. Data are disseminated via press releases, publications, and on each organization’s website. Certain data, such as the PPI, are not published as press releases. Only limited metadata is available for the CPIs and there is nothing for the PPI. Additional non-published detailed data are not provided due to concerns about the quality of the disaggregated data. The CBSL has a help desk, but users often find that it is difficult to get through to the appropriate official.

41. Annual government finance statistics on central and provincial governments are disseminated by both the CBSL and the MOFP. The annual comprehensive GFS in the CBSL Annual Report allows major aggregates and balancing items to be identified and related to detailed underlying data. This information is equivalent in detail to that set out in the GFS tables. The dedicated annual government finance publication is the MOFP’s Trends in Public Finance, the most recent issue of which is for 1999. It covers summary annual and sub annual data on budgetary central government and provincial councils. Monthly and quarterly GFS, in summary presentations, are published in the CBSL Monthly Statistical Bulletin. The actual date of official publications with GFS is not pre-announced. Statistical publications are made available to all users simultaneously. Reported metadata on definitions, concepts, and compilation procedures are not sufficient. No specific contact person for GFS is publicized.

42. Presentation of monetary statistics is analogous to the presentation in IFS. Monetary data are disseminated in CBSL’s Annual Report, Monthly Bulletin, Monthly Indicators and Selected Weekly Indicators releases. Data are also posted on the CBSL’s website. More comprehensive data are published in the Monthly Bulletin and the Annual Report, which also carry detailed footnotes and commentary. A CBSL document Notes on Statistical Tables in the Monthly Bulletin (1980) provides a comprehensive description of the data published in the Monthly Bulletin. Monetary statistics are released by CBSL to all users simultaneously, but there is no pre-announced schedule for release of weekly and monthly data. Only CBSL senior management can sanction provisions of any unpublished information. The Director of Information Department is available to clarify issues relating to press releases and published data; however, this information is not publicized. A list of CBSL publications is printed in the back of every Monthly Bulletin.

43. Preliminary quarterly balance of payments statistics are disseminated via a press release, by posting on the CBSL’s website, and in the Monthly Bulletin. The presentation broadly follows BPM5 standard categories with debit and credit items provided separately for all components. Data in the Monthly Bulletin and the Annual Report carry detailed footnotes. More comprehensive and detailed balance of payments data are published in the Annual Report, which, by law, has to be published within four months from the end of the reference year. Some components of the BOP statistics are disseminated more frequently in the Selected Weekly Indicators (exchange rates, international reserves), and Monthly Indicators (external trade and some services). In principle, attempts are made to assist users with non-published sub-aggregates subject to the approval of CBSL management. The BOP statistics are released by CBSL to all users simultaneously with no regularly publicized schedule. The documentation on methodology is not easily accessible. Assistance to users is through the Information Department, although the contact person is not publicly identified.