Sri Lanka’s economy grew 4.1-pct in third quarter
ECONOMYNEXT – Sri Lanka’s economy grew 4.1% in the third quarter of the year, with the industrial sector, propelled by a recovery in construction, having the fastest growth, the Department of Census and Statistics said.
Gross Domestic Product for the third quarter of 2016 (July, August, September) at constant (2010) price reached Rs. Million 2,270,171 from Rs. Million 2,181,275 a year ago, a statement said.
Services had the highest share of GDP, at 56%, followed by industry, at 30.5%, agriculture at 7.6% and taxes less subsidies at 5.9%.
“During the third quarter of 2016, industrial activities recorded a significant increase in overall growth rate, at 6.8 percent, while the services activities have grown by 4.7 percent, compared to the third quarter of 2015,” it said.
However, the agricultural activities shrank by 1.9 percent tea, rice, rubber, spices and vegetables cultivation all declining and reporting negative growth rates of20.4 percent, 20.0 percent, 17.8 percent, 9.0 percent and 7.2 percent respectively during the quarter, when compared to the same quarter in the previous year.
Marine fishing grew by 7.4 percent.
Among industrial activities, ‘Construction’ activity, which has a higher share of industrial activities, increased by 14.4 percent during the quarter compared to the third quarter of2015.
‘Mining and quarrying’ grew 13.5 percent and manufacturing activities expanded by 2.7 percent.
Among the manufacturing activities, ‘Manufacture of food, beverages and tobacco’ which has the highest contribution to the GDP out of industrial activities, grew by 2.6 percent.
‘Manufacture of textile and wearing apparel’ and ‘Manufacture of rubber and plastic products’ grew by 3.3 percent and 5.8 percent respectively. The value added of ‘Electricity, gas, steam and air conditioning supply’ increased by 7.8 percent.
The performance of Services sector was underpinned specially by the sub activities of ‘Financial service activities’, ‘Insurance activities’, ‘Telecommunication’, ‘Education service’ and ‘Wholesale and retail trade’ which reported significantly higher growth rates of 12.9 percent, 12.3 percent, 11.7 percent, 10.2 percent and 4.6 percent respectively compared to the respective quarter in year 2015.
The Department of Census and Statistics also revised second quarter GDP growth to 2.7 percent from an earlier 2.6 percent expansion.
(COLOMBO, Dec 15, 2016)