The return on the two asset classes is repre− sented by the fund’s benchmark indexes, measured in foreign currency, for the period June 2011 to May 2012. Sources: Statistics Norway and Norges Bank  Today, the fund is far larger than in 2011. As a result, return variations will have a greater impact. With the current size and composition of the fund, the same return as in 2011 would have resulted in a loss of almost NOK 1 000 billion, or close to 35 percent of mainland GDP. The fund has become important for the Norwegian economy. The fiscal rule links fiscal policy to the value of the fund. This year, 15 percent of general government spending is projected to be financed by transfers from the fund. Looking ahead, movements in global capital markets will be the main source of variation in the value of the fund, and at times in a negative direction. The actual stance of fiscal policy must allow for this uncertainty. The fund had several good years following the euro crisis. Markets turned around, and quickly the loss was more than reversed. We cannot take for granted that this will always be the case. Conclusion Let me conclude. The global economy finally appears to have fully recovered from the prolonged weakness that followed the financial crisis. Growth has also strengthened in Norway after the decline following the oil price collapse. The government’s solid financial position has been of considerable help.
We anticipate a growth of  Meanwhile, core inflation continued its  5.5 – 6.0 per cent in 2017.  upward trend in 2016, reflecting the firming up of demand conditions in the  Central Bank of Sri Lanka – ROAD MAP 2017  8  economy and the revisions made to the  eleven months of 2016, an increase of  tax structure in the latter part of the  14.7 per cent over the previous year. year. Core inflation, based on CCPI,  Workers’ remittances recorded a  increased to 6.3 per cent, year-on-year,  moderate growth of 3.1 per cent during  at end 2016 in comparison to 4.5 per  the first eleven months of 2016 and  cent at end 2015, while NCPI based core  amounted to around US dollars 6.6  inflation was 6.8 per cent, year-on-year,  billion. With these developments, there  in November 2016.  was a narrowing of the savings –  In response to preemptive monetary policy measures, monetary aggregates, which expanded at a high rate, decelerated, while growth of credit to the private sector showed some slowdown, mainly reflecting the impact of increased market interest rates. investment gap as reflected in the lower current account deficit during the first nine months of 2016. Foreign investment in the government securities market saw a net outflow, while longterm loans to the government recorded a net inflow.