Agriculture support services makeup over half of rural GDP

An ADB/World Bank study has found that agriculture support services makeup over half of rural GDP and household incomes. An ADB/World Bank study has found that agriculture support services makeup over half of rural GDP and household incomes. The previously overlooked non-agro sector which included transport and trading activities is estimated to contribute as much as 65 percent of rural GDP, and over 50 percent rural household income.
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The study also found that the non-agro industry was most active during the harvest seasons, an indicator of the cross dependency of the two industries.

However, officials say the income and infrastructure disparity between most rural communities in Sri Lanka and the western province remained highly skewed.

The joint report launched on Tuesday highlighted that the fragmented distribution of infrastructure also influenced investments decisions and entrepreneurship.
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The report said that one of the biggest constraints for rural entrepreneurs was limited access to regional markets, limiting their exposure to new markets and through that demand.

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