Sri Lanka economy expands 6.8 percent in 2007

Mar 28, 2008 (LBO) – Sri Lanka’s economy expanded 6.8 percent in 2007 against 7.7 percent in 2006, but in the fourth quarter growth accelerated to 7.6 percent from 7.4 percent in the same period last year, government data showed. Head of Statistics Suranjana Vidyaratne said industry grew by 7.6 percent, services by 7.1 percent and agriculture 3.3 percent.

The gross domestic product deflator, by which nominal numbers are adjusted to arrive at real numbers, was 14.0 percent in 2007 up from 11.3 percent a year earlier.

Services

The services sector has growth by 7.1 percent against (7.7 in 2006), with wholesale and retail sector growing 6.1 percent, transport and communication growing 10.5 percent.

Telecoms grew steeply with fixed phones growing 45.5 percent and mobile phones growing 47.5 percent. Business process outsourcing grew by 11 percent.

Container operations at the Colombo port grew 9.8 percent.

Industry

Industry grew 7.6 percent down from 8.1 percent a year earlier. Mining are quarrying grew 19.2 percent.

The manufacturing sector grew 6.4 percent (5.5 percent 2006). Factory industry grew 6.7 percent.

Textiles and garments increased 15.2 percent.

Electricit