Sri Lanka 2020 GDP shrinks 16.3-pct in 2Q in Covid-19 hit, grows 1.5-pct in 3Q
ECONOMYNEXT – Sri Lanka’s gross domestic product had contracted 16.3 percent in the second quarter of 2020 amid Coronavirus lockdowns and recovered to grow 1.5 percent in the third quarter, the statistics office said.
In the first nine months of the year Sri Lanka’s GDP had contracted 5.3 percent.
“The second quarter GDP estimates, has shown unprecedented fall in real GDP by 16.3 percent…and it is the largest drop ever recorded in the Sri Lanka history,” Sri Lanka’s statistics office said in a statement.
Agriculture feel by 5.9 percent, , Industrial 23.1 percent and services by 12.9 percent.
“In addition, in the second quarter of 2020, the ‘Taxes less subsidies on products’ has recorded 30.1 percent of decrease with compared to the second quarter in the year 2019,” the statement said.
“This is due to the major fall in tax revenues due to the amendments made in the Tax rates and the thresholds.”
In the third quarter GDP was estimated to have expanded 1.5 percent,.
“Through out the third quarter in the year 2020, the country experienced the normalization of business activities and return to new-normality in day to day life style of the people, after the first wave of the covid-19 pandemic,” the statistics office said.
“This favorable condition affected on economic activities to perform well, specially in the third quarter and have resulted in recording 1.5 percent of positive growth rate in the economy for the first time for the year 2020.”
The Agriculture sector had grown 4.3 percent during the third quarter. Industry had grown 0.6 percent, with manufacturing industry, growing 5.3 percent. The Services sector had growth 2.1 percent.
In the first nine months GDP had contracted 5.3 percent with most sectors contracting except for ICT financial services and the government.
The International Monetary Fund is projecting a 4.6 percent contraction of GDP for 2020, while Sri Lankan authorities are forecasting a 1.7 percent contraction.
In October a coronavirus outbreak broke out. (Colombo/Dec15/2020)