For expats, living in Colombo more expensive than Jeddah, Manila, Mumbai, Delhi, Karachi – EIU surve

The cost of living in Colombo is more expensive than Mumbai, Delhi and Karachi, according to the latest global survey done by Economist Intelligence Unit (EIU).

A host of South Asian cities figured in the cheapest bottom of the list that compared 140 cities in 93 countries.

Colombo ranked 114th, above New Delhi (129th), Mumbai (131st) and at the bottom at 133th place Karachi. Teharan was ranked 130th. Living in Colombo was also expensive that Dhaka (Bangladesh), Manila (Philippines), Jeddah (Saudi Arabia).

At the bottom of the survey, the 10 cheapest cities have a strong presence in the Indian subcontinent. Despite the rise of India as a growing emerging-market economy, the low cost of living in cities continues to reflect the fact that the subcontinent remains a comparatively cheap place to live and work.

Karachi in Pakistan is the cheapest location surveyed, with a cost of living level at less than one-half of that of New York and one-third of that of Tokyo.

“Colombo (Sri Lanka), the only other city surveyed on the Indian subcontinent, is one of the 20 cheapest cities in 114th place,” EIU said.

EIU researchers survey a range of stores: supermarkets, mid-priced stores and higher-priced specialty outlets.

Prices reflect costs for more than 160 items — from food, toiletries and clothing to domestic help, transport and utility bills — in each city.

These are not recommended retail prices or manufacturers’ costs; they are prices at the point of sale.

The EIU’s Worldwide Cost of Living Survey is a full service that enables human resources line managers and expatriate executives to compare the cost of living in the sample countries and calculate fair compensation policies for relocating employees.

It said there are two major reasons why a city’s cost-of-living index will change over time: exchange rate movement and price movement. Since a common currency is required in making a comparative calculation, all local prices are converted into US dollars, which emphasises the role of currency movement. If, for example, a currency strengthens or inflation pushes up the price of goods, so the relative cost of living in that country will also rise.

            

Japan’s Tokyo has been ranked as the costliest place in the world, followed by Oslo (Norway), Japan’s Osaka Kobe, Paris (France) and Zurich (Switzerland) in the top five. Others in the top 10 include Sydney, Melbourne, Frankfurt, Geneva and Singapore.

“Despite the rise of India as a growing emerging-market economy, the low cost of living in cities continues to reflect the fact that the subcontinent remains a comparatively cheap place to live and work,” the survey said.

“Ten years ago Sydney was ranked 71st and Melbourne 80th, while Perth was ranked 91st and Brisbane was 93rd,” the survey said.

“This is the culmination of a remarkable rise in the cost of living in Australian cities over the last decade, a period in which the value of the Australian dollar has moved from around 50 US cents to passing parity with the US dollar earlier this year.”

It is now cheaper to live in London, Vienna, Rome, Berlin, Hong Kong and Beijing than most Australian cities, it said.

“This year the cost of living has increased further in Tokyo, despite the human and economic cost of the earthquake and tsunami that hit Tokyo in March and the subsequent nuclear reactor scare in Fukushima,” the survey further said.