Sri Lanka economy grew 7.2% 2Q06: Statistics Dept

Chandi Dharmaratne

September 28, 2006 (LBO) – Sri Lanka’s economy expanded 7.2 percent for the second quarter of this year, on the back of good rainfall and higher export volumes, the Census and Statistics Dept said Thursday. Economic growth during the same period last year was 6.0 percent, the statement said.

Good rainfall helped agriculture sector to expand, while the Ceylon Electricity Board was able to generate power by using their low cost hydro plants.

Economies of Sri Lanka’s main trading partners – the U.S., Japan and Europe – boomed during the quarter under review, which helped the island ship more goods and service like clothes and tea.

The Central Bank is due to announce second quarter economic data on Friday, despite the bank’s governor jumping the gun earlier this month to reveal first-half growth figures.

Governor Nivard Cabraal said the economy grew 7.9 percent for the six months to June, aided by growth in manufacturing, services and agriculture produce.

“We are on track for at least 7.0 percent growth this year, or even more than that. This sets the tone for a higher 8.0 percent growth next year,” Cabraal said.

Sri Lanka’s national accounts are prepared by two agencie