Agriculture contraction slows Sri Lanka growth in 3rd quarter
ECONOMYNEXT – Sri Lanka’s economy grew 3.3% in the third quarter of 2017 compared with a year ago, slowing from the 4% growth in the preceding quarter, as the agriculture sector continued to contract owing successive bouts of droughts and floods.
The Department of Census and Statistics said Gross Domestic Product for the third quarter of 2017 at constant (2010) price reached Rs. 2,351,384 million compared with Rs. 2,276,896 million for the third quarter of 2016.
During the third quarter of 2017, the ‘Services activities’ continued to expand further by 4.3 percent, while ‘Industrial Activities’ recording a marginal growth rate of 1.9 percent.
However, overall ‘Agricultural activities’ have reported a negative growth rate of 3.3 percent in the third quarter of 2017, which is the lowest growth rate in the third quarter since 2010, the department said in a statement.
“The Agriculture sector’ of the economy has been affected badly mainly due to the unfavorable weather conditions (severe drought as well as heavy rainfalls) that prevailed during the last 2 years in many districts of the country,” it said.
As a result, the ‘Agriculture sector’ has reported negative growth rates over the last 7 quarters.
(COLOMBO, December 18, 2017)