1. ECONOMIC CAPSULE May 2011 Research & Development Unit

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17. Where will the Next $ 10 trillion of GDP come from? World GDP over the past 12 months was about $65 trillion. In the year to September 2013, global output will be about $10 trillion bigger, according to the IMF’s projections. But where will that next $10 trillion be added? That depends on the size of a country’s economy, its growth rate and the appreciation of its real exchange rate. Focusing on any one of those things, to the exclusion of the others, can be a misleading guide to a market's potential. For example, China’s economy in 2013 will still be smaller than America’s. But because it is growing so fast, it will add $1.65 trillion compared to America’s $1.43 trillion. Japan—a slow-growing economy—will contribute $410 billion, less than Russia ($698 billion) or Brazil ($461 billion). But because Japan is so big, it will still contribute more than India ($392 billion). GDP is of course a "flow" not a "stock". It measures the flow of production over a period of time, usually a year. Over the past 12 months, the world economy has produced about $65-trillion worth of goods and services. Over the 12 months to September 2013, it will produce roughly $75 trillion-worth. The chart shows where that extra $10 trillion will be produced. Back to Contents Source: The Economist Reasonable care has been taken to maintain accuracy of information. However Commercial Bank of Ceylon PLC and/or its employees should not be held responsible for any loss or damage suffered in consequence of using such information Research & Development Unit

18. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise, suffered in consequence of using such information for whatever purpose. Honesty is the first chapter in the book of wisdom Thomas Jefferson Research & Development Unit