Sri Lanka economic growth 3.5-pct in first quarter 2019: Mangala

ECONOMYNEXT – Sri Lanka’s economic growth has accelerated to 3.5 percent of gross domestic product in the first quarter of 2019, from 1.8 percent in the last quarter of 2018, Finance Minister Mangala Samaraweera told parliament.

"I believe we have been able to move to a growth of 3.5 percent of GDP in the first quarter from the 1.8 percent in the conspiracy period last year," Samaraweera said.

He said the data will be officially released shortly.

National income accounting agencies are expected to be release data to citizens and the ruling class at the same time as a safeguard against ‘massaging’ analysts say.

Sri Lanka has seen a strong agricultural recovery in the first quarter but a collapse in credit and imports which points to much slower economic activity.

However delays in inflation pass through can overstate GDP shortly after a collapse of a currency and understated it later, when activity picks up.

In national income accounting export (postponed or foregone consumption) is a positive figure but imports (actual consumption) is a negative figure because it is already expected to have been counted in consumption.

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Tax revenues, especially value added taxes can be a strong guide to actual output. (Colombo/June18/2019)