Sept 17, 2012 (LBO) – Sri Lanka’s economy grew 6.4 percent in the second quarter of 2012 from a year earlier, slowing from 7.9 percent in the first quarter, gross domestic product estimates by the state statistics office showed. The statistics office said agriculture grew 9.1 percent from a year earlier, industry grew 9.5 percent and services grew 4.5 percent. In the second quarter of last year, agriculture grew 1.8 percent, industry 9.5 percent and services 8.8 percent.
Sri Lanka is expecting growth to slow around 7.0 percent this year after two years of growth around 8.0 percent, with the finance secretary saying growth may slow to as much as 6.7 percent.
External demand for exports has been weak, a drought has hit power generation and agriculture. The second half of 2011 also got a boost from central bank liquidity injections in the banking system.
Within agriculture tea contracted 3.5 percent, rubber grew 7.0 percent and coconut grew 6.0 percent and paddy grew 36.4 percent and the fishing sub sector grew 12.9 percent.
In industry, mining and quarrying grew 13.7 percent, manufacturing grew 6.2 percent with factory industry growing 6.2 percent. Textile, apparel and leather grew 6.2 percent.