Lankan economy grew by 3.2 % in 1Q 2018

Sri Lanka’s economy grew by 3.2 per cent in the first quarter of 2018, according to the Department of Census and Statistics (DCS) Sri Lanka.

The Gross Domestic Product ( GDP) at constant (2010) prices for the first quarter of 2018 was recorded as Rs. 2,223,856 million against quarter 2017 GDP of Rs.2,154,971 million.

The four major components of the economy: Agriculture, Industry, Services and Taxes less subsidies on products have contributed their shares to the GDP at current prices by 7 per cent, 30.4 per cent, 53.6 per cent and 8.9 per cent respectively for the first quarter of 2018.

In this quarter, agricultural activities expanded by 4.8 per cent against a 4.4 per cent contraction in the same 2017 quarter. The agriculture sector which recorded negative growth rates consecutively over several quarters due to unfavorable weather conditions, seems to be recovered and commenced recording positive growth rates since fourth quarter 2017, the DCS public statement said.

Industrial activities expanded marginally, recording 1 per cent growth during this period. Service activities further expanded by 4.4 per cent in the first quarter 2018 compared to the same quarter in 2017.

Among the sub activities of agriculture, rice production recorded 56.6 per cent growth rate against a contraction of 49.6 per cent in first quarter 2017. Growing of cereals (except rice), vegetables, tea, fruits and animal production, forestry and logging and fresh water fish and fresh water aquaculture production also recorded high growth rates.

Meanwhile a substantial negative growth of 13.5 per cent was reported in the production of “Oleaginous Fruits (including coconut)” due to continuous drought seen in the coconut growing areas during the last year.

The services activities which contributed the highest share of 53.6 per cent to the overall GDP grew by 4.4 per cent during the first quarter of 2018, compared to the same quarter in 2017. The DCS said that quarterly national accounts estimates are compiled mainly using the provisional estimates provided by the data providers. Based on the actual data received, the DCS has revised the third and fourth quarters of 2017 and the annual 2017 growth rates as 3.2 per cent, 3.5 per cent and 3.3 per cent, respectively.