Sri Lanka Current Affairs - 2020

India ranked 34th in JLL and LaSalle’s biennial GRETI

Sustainability Initiatives and regulatory reforms have enhanced higher levels of transparency in the real estate industry of India as a result of which India improved its ranking to 34th place in the biennial Global Real Estate Transparency Index (GRETI).

GRETI

The Index GRETI has set a unique benchmark in terms of transparency in the real estate market across the globe and has also served as an essential guide for international companies investing & operating in the foreign markets.

GRETI is released biennially by the United States-based property and investment management services firm- Jones Lang LaSalle Incorporated (JLL). GRETI was first released in the year 1999. This year marked the 11th edition of GRETI. A total of 163 cities and 99 countries have been covered in the 11th edition of GRETI.

India’s ranking explained in Depth

India ranked 34th in 2020 edition had made a significant improvement in ranking as in the 2014 edition, India was ranked at the 39th place globally. For this improvement, GRETI has citied improvements and reforms such as Real Estate Investment Trust (REIT) framework improved, RERA Act 2016, Benami Transaction Prohibition (Amendment) Act 2016, Goods and Services Tax (GST), etc.

India’s overall score in 2020 GRETI ranking was 2.69 (Higher the score- Lower the Ranking).

Other Countries in the Ranking

  • United Kingdom (overall score: 1.31) has been ranked at the first place in GRETI 2020 ranking
  • United States (1.35) and Australia (1.39) have been ranked at second and third place respectively
  • Hong Kong (2.03) was ranked at 15th place, while Taiwan (Republic of China) (2.34) has been ranked at 23rd place
  • China ranked 32nd with a 2.59 overall score
  • Sri Lanka at 65th place,  Myanmar at 72nd, Pakistan at 73rd

Nepal becomes Lower-Middle Income Economy while Sri Lanka slips to Lower-Middle Income Economy

As per the 2020-21 World Bank’s Country Classification based on Income level, Nepal’s economy has moved to a higher category to become a Lower-middle Income economy while Sri Lanka’s economy has moved to a lower category to become a Lower-middle Income economy.

Every year, the World Bank classifies countries into four income groups- (i) Low (ii) Lower-Middle (iii) Upper-Middle (iv) High Income. This classification of the economies of countries across the world is updated on the 1st of July every year by the World Bank. The classification of a country is done by using the Atlas Method by the World Bank. World Bank is using the Atlas Method since 1993 to estimate the size of an economy. Under the Atlas Method, Gross National Income (GNI) of a country is converted into the current U.S. Dollars.

As per the 2020 Classification, India remains a Lower-Middle Income country.

Nepal

2 years back, on 22nd May 2018, the Nepal Government announced that within the upcoming 10 years, its target will be to become a Lower-middle income country. Nepal achieved the target of becoming a Lower-Income country well ahead of its plans.

For becoming a Lower Middle-Income country, the World Bank has set the GNI per capita to be between USD 1036 to USD 4045. Nepal marginally crossed the line as its GNI in 2019 was USD 1090.

Sri Lanka

For becoming an Upper-Middle Income country, GNI per capita to be between USD 4046 to USD 12,535. Sri Lanka becomes a Lower-Middle Income country from an Upper-Middle Income country as its GNI per capita in 2019 was marginally short of the minimum of USD 4046 required to become an Upper Middle Income Country. USD 4020 was Sri Lanka’s GNI per capita in 2019.