Sri Lanka’s Economic Growth at 4.0% in Q2
COLOMBO (Dispatches) - Sri Lanka’s economy grew at a positive rate of 4.0 percent during the second quarter of this year despite the impact of the disastrous weather experienced during the quarter, the Department of Census and Statistics (DCS) said on Friday releasing the GDP Summary Indicators for the 2nd Quarter 2017.
According to the National Accounts Estimates for the second quarter of 2017 released by the DCS, the Gross Domestic Product (GDP) for the second quarter of 2017 at constant (2010) price reached up to Rs. 2.2116 trillion and the GDP reported for the second quarter of 2016 was Rs. 2.1258 trillion.
The four major components of the economy - Agriculture, Industry, Services and Taxes less subsidies on products has contributed their share to the GDP at current price by 8.2 percent, 25.9 percent, 56.6 percent and 9.4 percent respectively in the second quarter of 2017.
During the second quarter of 2017, the Industrial and the Services activities have recorded higher growth rates of 5.2 percent and 4.5 percent respectively. However, overall Agricultural activities have reported a negative growth rate of 2.9 percent.
Agriculture sector of the economy has been affected badly from the unfavorable dry weather conditions during the last 18 months resulting in severe drought in some areas while many districts in the other parts experienced floods and landslides due to heavy rains. As a result, Agriculture sector has reported negative growth rates during last 6 quarters.
The industrial activities which shared the GDP by 25.9 percent at current price, has recorded a considerable growth rate of 5.2 percent in the overall industrial activities in this quarter.
Among the three major activities, the Services activities which gave the highest contribution of 56.6 percent to the GDP, recorded a positive growth rate of 4.5 percent during the second quarter of 2017, when compared to the same quarter in the year 2016. The World Bank projects Sri Lanka’s economy to grow by 4.7 percent in 2017 and marginally exceed 5.0 percent growth in the medium term, driven by private consumption and investment.