Sri Lanka records 4.3% economic growth for 1Q

■ „Both agriculture and industries gain positively; services expand moderately ■ „DCS says second wave of pandemic affected 1Q economic performance to “some extent”

■ „Construction sector grows moderately; telecommunication activities record sharp gain

■ „Almost all agriculture activities record positive growth rates, barring growing of rice and marine fishing

Sri Lanka’s economy grew 4.3. percent during the first quarter of 2021, compared to a contraction of 1.8 percent in the first quarter of 2020, the data released by the Department of Census and Statistics (DCS) showed.

The DCS said the performance of the economy in the first quarter was affected to “some extent” due to the spread of the second wave of the pandemic, which started in October, last year.

Among the three major economic activities, the agriculture sector recorded a positive growth of 6.1 percent, compared to a negative growth of 6.5 percent in 1Q20, while the industries recorded a growth of 5.5 percent.

The DCS pointed out that these two sectors were able to contribute to the overall economic growth positively as a result of the continuation of their activities even during the period of Covid19-related restrictions.

Meanwhile, the services sector activities expanded at a moderate rate of 3 percent during the quarter.

The DCS said most agriculture activities, including growing of tea, rubber, cereals, vegetables and fruits, recorded positive growth rates during the quarter under review but growing of rice and marine fishing contracted 6.3 percent and 16 percent.

Meanwhile, the positive growth in industrial activities was underpinned by the expansion in the manufacturing, construction, mining and quarrying activities during the quarter under review.

The moderate growth of the services sector was supported by the subactivities of telecommunication, IT, financial services and insurance. The telecommunication activities expanded by 19.1 percent, indicating that more people took to online services due to the restrictions on in-person contacts.

Wholesale and retail trade and transportation of goods and passengers expanded moderately during the quarter. However, accommodation, food and beverage services-related activities contracted by 31.9 percent during the quarter, largely due to Covid-19-related disruptions and restrictions.