Sri Lanka posts post-tsunami growth

Sri Lanka’s economy grew 6.4 percent in the third quarter 2005 on a rebound in the services and industries sectors, improving form the 6 percent growth recorded in the second quarter. Sri Lanka’s economy grew 6.4 percent in the third quarter 2005 on a rebound in the services and industries sectors, improving form the 6 percent growth recorded in the second quarter. The bank said available data indicated that the annual economic growth rate for the year 2005 could be revised up to around 5.5 percent from the range of 5.0 – 5.5 percent projected earlier in the year, particularly as the adverse impact of the tsunami disaster on the economic activities in certain sub sectors is dissipating gradually.

Third Quarter

A bank statement on Friday said “the services and industries sectors provided the impetus for growth during the quarter and grew by 7.5 percent and 6.9 percent, respectively.”

However the bank said the adverse effects of the tsunami continued to be felt in the third quarter of the year.

The most affected sub-sectors, fishing and hotels and restaurants, are still in the process of recovering, while the construction sector has had an added impetus follow