Sri Lanka’s West generates most output, South grows fastest in 2014

ECONOMYNEXT – Sri Lanka’s Western province which has the highest population and is most integrated with the world generated the highest gross domestic product of 42 percent of the total, while the Southern province grew fastest at 11.1 percent in 2014, the Central Bank said.

Using new GDP data compiled by Sri Lanka’s statistics office, which the central bank split into district levels, the Central Bank said the Western province grew the slowest at 5.9 percent including inflation compared to 7.3 percent from the whole country.

The contribution of services in the Western province fell to 58.9 percent from 60.9 percent and agriculture grew to 2.3 percent from 2.1 percent. The contribution from industry rose to 38.8 percent from 37.1 percent.

In the Southern province which grew at 11.1 percent, the contribution from agriculture fell to 12.5 percent from 13.9 percent and, industry grew to 27.3 percent from 26 percent.

The former war zones of the Northern Province grew 8.3 percent and the East 6.2 percent including inflation.

The Western province which is most exposed to the world, contributed 42.5 percent to output, the North Western province bordering the Western province 10.5 percent (overtaking the south which had 10.8 percent in 2013, Central and Southern had 10.5 percent, Sabaragamuwa 6.8 percent.

Among the province with the smallest output included East (5.9 percent), Uva (4.9 percent) and the Northern province 3.5 percent with the smallest. Both the North and the East had been caught in a 30 year war until 2009.

Sri Lanka’s GDP has been revised from this year on a new base and methodology.

The total output of a region will be determined by its population and productivity. Activity such as in-migration to fast growing coastal areas also boost output in many Asian nations including China.

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In general areas which depend heavily on agriculture has lower productivity may generate lower output.

In Sri Lanka there is heavy state intervention in agriculture by urban politicians, in line with European rural nationalist ideas (with emphasis on European style agrarianism), which some analysts say, has prevented the take-off seen in East Asian countries which have liberalized.

 

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