Sri Lanka GDP grows 7.4-pct in 2014: data

COLOMBO (EconomyNext) – Sri Lanka’s gross domestic product grew 7.4 percent in 2014, with the quarter growing 6.4 percent from a year earlier, the state statistics office said.

The agriculture sector grew 0.3 percent in real terms after adjusting for inflation, industry 11.4 percent and services 6.5 percent with general price inflation by the broad GDP deflator measured at 6 percent.

At constant 2002 prices, agriculture was 10.1 percent of GDP in 2014 (down from 10.8 percent last year) and industry expanded to 32.2 percent from 31.1 percent. Services fell to 57.6 percent from 58.1 percent.

In 2014, GDP at inflated prices rose to 9,749 billion rupees up from 8,674 billion rupees.

Sri Lanka’s GDP statistics has come under fire from the country’s then opposition. But national income accounting mostly based on the work of Richard Stone and Simon Kuznets.

GDP is compiled by state agencies and ‘improvements’ to the methods of compilation usually results in upward revisions of economic output, making nonsense of previous years of data meticulously followed by economists and policymakers.

India recently upwardly revised its GDP which was viewed with scepticism even by its Central Bank Governor. China has also revised its GDP upwards. Countries do not usually revise GDP downwards in the same manner.

Government statisticians on the other hand revise inflation downwards frequently through various ‘improvements’.  They do not usually revise inflation upwards.