Fact Check
Former MP Eran Wickramaratne argues that Sri Lanka has a low level of savings, claiming it is about half or less than the savings levels in India and China.
To check these claims, FactCheck.lk consulted the Ministry of Finance (MoF) Final Budget Position Report 2023 and the World Bank (WB) databank.
According to the MoF 2023 data, Sri Lanka’s domestic savings were 23.8% of GDP, a decrease from 2022 (25%) and 2021 (29.4%). The WB reports the same figures for this period. This savings rate is higher than the 15%-20% range quoted by the former MP, and also exceeds the global and South Asian average of 20%-22%.
Regarding Sri Lanka’s savings compared to India and China, the WB reports that India’s domestic savings in 2023 were 29.2% of GDP, an increase from the previous two years. Similarly, China’s domestic savings in 2022 were 46.6% of GDP, also rising from the previous year (see Exhibit 1). The former MP’s figures overstate the savings rate for both countries. In comparison to Sri Lanka, the savings rate in India and China is about 1.2 and 2 times higher, respectively, but not 2 to 3 times higher as implied by the claim.
None of the actual statistics fall within the specific ranges cited by the former MP, and the relative claim about Sri Lanka’s low savings, as well as the comparative claim against India and China, are not supported by the data.
Therefore, we classify the former MP’s statement as FALSE.
*FactCheck.lk’s verdict is based on the most recent information that is publicly accessible. As with every fact check, if new information becomes available, FactCheck.lk will revisit the assessment.
Exhibit 1: Sri Lanka, India & China Domestic Savings 2021-2023
Sources
Ministry of Finance, Final Budget Position Report 2023. Accessed via https://www.treasury.gov.lk/api/file/ad12f7fa-d2db-43d4-9daa-9270ee7b7cac.
World Bank Data. Accessed via https://data.worldbank.org/indicator/NY.GDS.TOTL.ZS.