Sri Lanka's Productivity Growth Outpaces Asian Economies, Driving Economic Expansion.
The study looked at how much of Sri Lanka's economic growth comes from Total Factor Productivity (TFP) improvement compared to other Asian countries. They used two methods to calculate TFP growth and found that it accounts for 45% of total output growth. The annual average TFP growth rates were 2.3% and 3.6% under different approaches. Sri Lanka's TFP growth has been positive and higher than some Asian countries, except for China. Despite similar GDP levels, Sri Lanka's TFP growth has been higher than Indonesia's. The main drivers of growth in Sri Lanka have been capital accumulation and productivity growth.