Sri Lankaâ€™s regional economic disparities narrow: central bank
ECONOMYNEXT – Sri Lanka’s Western Province retained its dominance in the economy in 2017 but its share reduced as other provinces, some considered lagging regions, contributed a bigger share, narrowing regional disparity, the central bank said.
The Provincial Gross Domestic Product (PGDP) shows that the Western Province continued to account for the largest share of the country’s nominal GDP, it said in a statement.
But its share slipped to 37.2 percent in 2017 from 37.8 percent the year before, according to the PGDP estimated by the Statistics Department of the Central Bank of Sri Lanka.
This was in line with recent trends, contributing to narrowing of regional disparity, it said.
“During 2017, increases in PGDP shares could be observed in Eastern, North Western and Uva provinces, while that of Western, Southern, North Central and Sabaragamuwa provinces decreased. “
The shares of Central and Northern provinces remain unchanged.
Central and North Western provinces were the second and third highest contributors to the national GDP in nominal terms.
The central bank said that analysis of the economic structures within the province shows that services activities play a dominant role in each province contributing more than 50 per cent to the PGDP, except for Uva province where the contribution from the services sector was 37.8 per cent.
“The performance of the services activities in each province was largely backed by the developments in wholesale and retail trade together with the expansion in transportation
activities,” the statement said.
Provincial GDP of Uva province was largely driven by industry activities (44.2 per cent), for which mining and quarrying contributed significantly.
In other provinces, the contributions from industry activities to PGDP varied from 16.2 to 31.5 per cent.
In line with the trend observed in national GDP, contribution from agriculture activities to PGDP was the lowest in all the provinces ranging from 2.1 to 15.1 per cent.
During 2017, Eastern province recorded the highest share of 15.1 per cent, which was led by production of rice and marine fishing.