Sri Lanka industrial productivity up 10.9-pct in 2010

Apr 21, 2011 (LBO) – Labour productivity in Sri Lanka’s industry rose 10.6 percent in 2010 racing ahead of economy-wide gains which were dragged down slower increases in agriculture and services, according to official data. Overall labour productivity in all three sectors rose 6.6 percent from a year earlier to 343,000 rupees. Labour productivity is measured as gross domestic product per worker in constant 2002 prices.

Sri Lanka’s industry is largely private sector driven and large portion of factory industry is export oriented, making it subject to global competition. Some domestic industrialists who are close to rulers however are lobbying for protection.

The Central Bank says more efficient and reliable transport and power could help industry improve productivity.

Productivity growth in agriculture was 5.1 percent. In Sri Lanka there is a close nexus between rulers and farmers including landowners.

Each year the sector gets about 25 billion rupees in fertilizer subsidies and there is also heavy protection from imports leading to volatile prices and food insecurity for the entire population.

With high and volatile food prices, rulers have asked workers in industry and services to farm their ba