Sept 18, 2017 (LBO) – Sri Lanka’s economy grew by 4 percent in the second quarter of 2017, up from 3.8 percent in the earlier quarter.
Issuing a statement the Department of Census and Statistics said the Gross Domestic Product for Sri Lanka for the second quarter of 2017 at a constant (2010) price reportedly reached up to 2,211,612 million rupees and the GDP reported for the second quarter of 2016 was 2,125,848 million rupees.
The industrial and the services activities recorded higher growth rates of 5.2 percent and 4.5 percent respectively.
Agricultural activities reported a negative growth rate of 2.9 percent, the sector was affected by bad weather for the past 18 months.
The four major components of the economy, agriculture, industry, services and taxes less subsidies on products, have contributed their share to the GDP at the current price by 8.2 percent, 25.9 percent, 56.6 percent and 9.4 percent respectively in the second quarter of 2017.
Among the sub-activities of agriculture, the value added ‘growing of rice’, ‘growing of oleaginous fruits including coconut’, ‘growing of cereals (except rice), ‘growing of vegetables’ and ‘growing of spices’ declined by 32.9 percent, 20.2 percent, 15.3 percent, 5.9 percent and 3.8 percent respectively during this quarter, when compared to the same quarter of the previous year.
However, the ‘growing of rubber’ and ‘growing of tea’, which recorded negative quarterly growth rates continuously for the last three years, have reported significant positive growth rates of 10.2 percent and 6.9 percent respectively in the second quarter of 2017.
In addition, ‘animal production’ and ‘fresh water fishing’ have reported considerably high positive growth rates of 10.9 percent and 9.0 percent respectively.
Agricultural activities such as ‘forestry and logging’ and ‘marine fishing’ have also reported positive growth rates (5.5 percent and 3.1 percent respectively) during the second quarter of 2017.
The industrial activities, which shared the GDP by 25.9 percent at current price, have recorded a considerable growth rate of 5.2 percent in the overall industrial activities of this quarter.
Among the industrial activities, the construction activity, which corresponds to the highest share within the industry sector, grew by 9.3 percent during this quarter when compared to the second quarter of 2016.
In parallel with the construction activity ‘Mining and quarrying’ has also reported a significant growth rate of 18.4 percent.
Overall manufacturing activities have grown by 0.9 percent during the second quarter of 2017. The major proportion of manufacturing activities is shared by the ‘manufacture of food, beverages and tobacco’ and the ‘manufacture of textile and wearing apparel’ activities which have reported a 2.2 percent negative growth rate and 2.5 percent positive growth rate respectively during the quarter.
In addition, the ‘manufacture of furniture’ and ‘manufacture of rubber and plastic products’ activities have reported significant positive growth rates of 12.4 percent and 8.4 percent respectively.
Among the three major activities, the Services activities, which gave the highest contribution (56.6 percent) to the GDP, recorded a positive growth rate of 4.5 percent during the second quarter of 2017, when compared to the same quarter in 2016.