Sri Lanka war-torn north shows highest economic growth: CB

July 12, 2011 (LBO) - Sri Lanka's northern province, which had been badly hit by war, had the highest rate of economic growth in 2010 as a post-war rebound continued, the central said. The north's gross domestic product grew 22.0 percent last year, the bank said in an analysis of provincial GDP.

The eastern province, which had also been affected by war, came fourth with a growth of 18.7 percent after the north-central province which grew 20.3 percent and Sabaragamuwa province which grew 19.1 percent.

In 2009, it was the eastern province which had the highest rate of growth among provinces, expanding 13.4 percent, followed by the north at 12.1 percent.

Sri Lanka's 30-year ethnic war ended in May 2009, with the east being cleared several months earlier.

The war had retarded the region's economic growth and destroyed infrastructure or caused its neglect.

In 2010 Sri Lanka's national GDP at current prices grew by 15.9 percent.

"In line with improvements in country’s economic environment, all the provinces have reported a double digit growth rate in 2010," the central bank said in a statement.

"Reflecting the rapid expansion in income generating activi

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