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Sri Lankan economy expands 5.1-pct in Q1 2015 after rebasing

July 23, 2015 (LBO) – Sri Lanka’s rebased national accounts estimates, which takes 2010 as base year, against 2002 shows the Islands economy five percent bigger.
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“The structural composition of the economy has changed after the rebasing due to revision of the reference year and other improvements made to the system in the rebasing process,” the census and statistics department said. “The GDP that measures the size of Sri Lankan economy in the new series stood at 2,740,980 million rupees level in the first quarter of 2015 while the same recorded 2,607,045 million rupees in the old series,” “Accordingly, the size of Sri Lankan economy has expanded by 5.1 percent.” The most significant implication, the department said is the reduction of the contribution of agricultural activities to the total GDP from 2010. “In the old series, agricultural, industrial and services activities contributed 13.
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3 percent, 32.6 percent and 54.1 percent to the GDP at current prices for the first quarter of 2015.
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” However in the new series the contribution of agricultural and industrial activities decreased to 7.8 percent and 28.7 percent respectively. The services activities increased up to 56.
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5 percent in the new series representing the trend towards services dominant economy. Under the old series Agricultural, Industrial and Services activities contributes to the overall growth rate of 6.
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4 percent 1.3 percent, 33.3 percent and 65.4 percent respectively. But in the new series, industrial activities contributed negatively to the overall growth rate in the first quarter of 2015.
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