Bang for buck
The other factor is the efficiency of the economy which determines how much output a given amount of investment will bring. Economists measure this by the incremental capital output ratio (ICOR).
"If we are an efficient nation we should have the lowest ICOR," W A Wijewardene, a top economist and former deputy governor of Sri Lanka's central bank told forum in Colombo.
"USA has an ICOR of 2.5, Japan about 3.0, Western Europe again about 2.5, Australia about 3.0. Sri Lanka’s ICOR has been about 5.0.
"That means, for us to earn one rupee we have to invest, five rupees; whereas in the USA, for them to earn one rupee, they only have to invest two and a half rupees."
Wijewardene says it is about 20 kilometres from his residence to the centre of Sri Lanka's capital Colom