Wednesday, 17th September 2014

  • To expand at 7.8 percent this year
  • Significant growth in industrial, service and agricultural sectors

Sri Lanka’s economy grew 7.8 percent in the second quarter of 2014 from the same period a year earlier, accelerating from 7.6 percent in the previous three months, data released by the government’s statistics office showed on Monday.

The industrial sector grew 12.2 percent year-on-year and the service sector by 5.8 percent. The agricultural sector expanded 6.5 percent, the data showed. The Central Bank estimates the economy will expand at 7.8 percent this year with an inflation target of between 4-6 percent, from a 7.3 percent growth last year.

Sri Lanka’s Gross Domestic Product (GDP) expanded by 7.8 percent in the second quarter of 2014 compared to same period last year, the Department of Census and Statistics said in its Quarterly Estimates of Gross Domestic Product report released Monday. The total economic output in Sri Lanka, measured by the GDP for the second quarter 2014 from April to June was Rs. 840.653 billion, recording a positive growth rate of 7.8 percent compared to the second quarter of 2013 which was estimated as Rs. 779.974 billion, according to the Census and Statistics Department.

The three main contributors to the economy recorded significant growth for the quarter. The agriculture sector contributed 10.6 percent to the GDP, industries sector 31.5 percent and the services sector 58 percent in the second quarter of 2014.

The growth rate of agriculture sub sector including agriculture, livestock and forestry increased by 5.9 percent in the second quarter of 2014 compared to the 0.5 decrease reported in second quarter of 2013. Industry sector showed a growth of 12.2 percent in the second quarter of 2014 compared to the growth of 10.1 percent in the second quarter of 2013.

The services sector which corresponds to higher share of 58 percent to the Gross Domestic Product and it has recorded a 5.7 percent increase in the second quarter 2014 while it grew by 6.6 percent in the respective quarter of 2013.

In the agriculture sector, the tea industry showed a growth of 7.1 percent and coconut production increased 9.4 percent Year-on-Year in Q1 2014 while rubber production declined 3.7 percent. Rice production decreased by 5.7 percent YoY due to the prolonged drought in the dry zone and Minor Crops showed a significant growth of 47.2 percent in Q1 2014.

Livestock sub sector showed only a slight increase over the period with 1.9 percent growth while fish production increased by 10.5 percent. Colombo Consumers’ Price Index which reflects the average price level of consumers’ goods is increased to 179.8 in the Q2 2014 from 173.5 in the Q2 of 2013, recording a 3.6 percent inflation rate in the quarter. 

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