Sri Lanka’s economy grew 4.1-pct in third quarter

Dec 15, 2016 (LBO) –  Sri Lanka’s economy grew 4.1 percent in the third quarter of 2016 with strong growth construction, a statement said.

“During the third quarter of 2016, industrial activities recorded a significant increase in overall growth rate, at 6.8 percent, while the services activities have grown by 4.7 percent, compared to the third quarter of 2015,” he Department of Census and Statistics said in a statement.

“Gross Domestic Product (GDP) for the third quarter of 2016 (July, August, September) at constant (2010) price reached 2,270,171 million rupees.”

In 2015 GDP was recorded at 2,181,275 million rupees.

According to the statement the services had the highest share of GDP, at 56 percent,  industry 30.5 percent, agriculture at 7.6 percent.

“The industrial activities which shared the GDP by 30.5 percent at current price, has recorded a significant growth rate in this quarter,”

“The industrial activities have expanded by 6.8 1 percent. Among the industrial activities, the ‘Construction’ activity, which corresponds to a higher share of the industrial activities, increased by 14.4 percent during this quarter compared to the third quarter of 2015.”

In addition, the sub activity of ‘Mining and quarrying’ recorded 13.5 percent of very high growth rate. During the third quarter of 2016, the manufacturing activities expanded by 2.7 percent.

However, the agricultural activities shrank by 1.9 percent tea, rice, rubber, spices and vegetables cultivation all declining and reporting negative growth rates of 20.4 percent, 20.0 percent, 17.8 percent, 9.0 percent and 7.2 percent respectively during the quarter, when compared to the same quarter in the previous year.

Among the three major activities, the Services activities which gave the highest contribution (56.0 percent) to the GDP growth, recorded a positive growth rate of 4.7 percent during the third quarter of 2016, when compared to the same quarter of the year 2015.

The performance of Services sector was underpinned specially by the sub activities of ‘Financial service activities’, ‘Insurance activities’, ‘Telecommunication’, ‘Education service’ and ‘Wholesale and retail trade’ which reported significantly higher growth rates of 12.9 percent, 12.3 percent, 11.7 percent, 10.2 percent and 4.6 percent respectively compared to the respective quarter in year 2015.