Abstract:
The current sustainable developmental literature lacks a uniform approach to combine
indicators that result in a composite index and its application in capturing inequalities in area
based development outcomes. Rather than using various abstract variables in the form of
numbers or proportions separately, a single index quantifying complex conditions can be more
meaningful in understanding area-level factors that shape sustainable development. The paper
focuses on developing an area based sustainable development index for Southern Province, Sri
Lanka, in order to understand differences in developmental outcomes and would be a very
valuable opportunity to identify the current situation by comparing the region-to-region in a
multivariate context. The area-based index was formulated by two different methods, z-scoring
method and factor scoring method based on twelve selected variables which measuring multiple
aspects of development status. Secondary data were gathered through the statistical handbooks
related to the divisional secretariat’s divisions in districts which published in 2018 and 2020. A
Kaiser-Meyer-Olkin test and Bartlett’s Test of Sphericity were used to assess the
appropriateness of using Principal Components Analysis. Three factors were discovered which
together explained 88.6 per cent of the total variation. Pearson’s correlation coefficient of both
indices is 0.99 and it showed that there is a very high positive correlation among values of both
composite indices. The computed scores have ranged from 0 to 100 and divided into four
developed groupings, such as “High” (75-100), “Medium-high” (50-74), “Medium-low” (25-
49), and “Low” (0-24). Four Gravets in Galle district is achieved the highest rank in both indices
in both years with indicating “high” development. Matara division is achieved “medium-high”
development. The development has changed among in divisions in the time lag; it has caused
to change the rank of the indices. However any of division in Hambanthota district couldn’t
enter to the top 10 Divisional Secretariats’ Divisions according to the level of sustainable
development obtained under both statistical methods. The multi-dimensional composite index
developed here within both frameworks are provided a better picture of economic, social,
cultural, and related structural conditions, and thereby, sustainable development stratification
of areas across major development groupings.
