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Monday, 26 March 2012 00:00 - - {{hitsCtrl.values.hits}}
The value of Sri Lanka’s economy last year had crossed the Rs. 6.5 trillion mark, whilst in constant prices basis growth of GDP touched a record 8.3%.
The figure of 8.3% GDP growth revealed by the Department of Census and Statistics over the weekend was above the previous forecast of 8%, the rate at which the Sri Lankan economy grew in 2010 as well. In its 2011 Annual Report which is to be released shortly, the Central Bank is expected to confirm the data.
The release of the latest data by the Census and Statistics Department confirms two successive years of 8% growth for Sri Lanka, an achievement largely credited to the end of the war in May 2009.
At current market prices, GDP in 2011 was valued at Rs. 6.54 trillion, up by 16.7% from Rs. 5.6 trillion in the previous year. At constant prices, GDP was worth Rs. 2.86 trillion, up from Rs. 2.64 trillion in 2010.
Reflecting the new dimension in the economic landscape of Sri Lanka, the industry sector posted its highest growth in several decades of 10.3% as against 8.4% in 2010. In addition, it increased its share of the GDP to 29.3%, also a record.
The services sector, which dominates the economy with a share of 59.5%, grew by 8.6%, up from 8% in 2010, whilst the agriculture, forestry and fishing sector managed to grow by only 1.5%, down from 7% in 2010. Its share in GDP dipped marginally to 11.2% from 11.9% in 2010.
Within the industry sector, the manufacturing sub sector which accounts for a 17.3% share (same as in 2010) had produced a robust 7.9% growth in 2011, up from 7.3% in the previous year. The construction sub sector accounting for a 7.1% share (up from 6.7%) grew by 14.2%.
Mining and quarrying (up 18.5%), electricity, gas and water (up 9.2%), textile, apparel and leather (up 10.8%, double from 5.2% in 2010) were among noteworthy performers.
In the services sector, wholesale and retail trade accounting for 23.6% share of the GDP grew by 10.3%, and hotels and restaurants improved by 27.4% (but down from 39.8% in 2010) whilst the transportation and communication sub sector grew by 11.3%, almost the same as in 2010. The banking, insurance and real estate sub sector grew by 7.9%, up from 7.5%, whilst its share of GDP declined to 8.8% from 8.9%.
In the agriculture sector, tea saw negative growth along with minor export crops and paddy. Rubber and coconut grew whilst livestock saw a high 7.3% growth up from 2.9% in 2010. The fishing sub sector which accounts for 1.3% of GDP grew by 15.5%, as against 12.2% in 2010.
