Sri Lanka’s GDP expands 8.2-pct in June quarter: statistics office

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Sept 15, 2011 (LBO) – Sri Lanka’s economy expanded by an estimated 8.2 percent in the second quarter of 2011 from a year earlier, led by industry and services, the state statistics office said. In the second quarter of 2010, gross domestic product grew by 8.5 percent.

The statistics office said industry, which has a 29 percent share in the economy grew by 9.4 percent (up from 9.2 percent last yea, and services which has a 58 percent share grew 8.8 percent (up from 8.8 percent last year).

Agriculture which only has a 12 percent share slowed to 1.9 percent, down from 6.3 percent last year.

Sri Lanka is expecting full year growth to exceed 8.0 percent. The International Monetary Fund expects the economy to grow at least 7.5 percent.

Risk free rates have been below inflation for some time and Sri Lanka is now experiencing currency pressure and liquidity is drying up in the banking system.