Lanka’s GDP expected to grow by 4 % in 2Q- 17

Sri Lanka’s Gross Domestic Product (GDP) for second quarter of 2017 is expected to grow by 4 percent, the Department of Census and Statistics Sri Lanka said.

The GDP for the second quarter of 2017 at constant (2010) price reportedly reached up to Rs. 2,211,612 million and the GDP reported for the second quarter of 2016 was Rs. 2,125,848 million.

The four major components of the economy; Agriculture, Industry, Services and Taxes less subsidies on produces has contributed their share to the GDP at current price by 8.2 percent 25.9 percent 56.6 percent and 9.4 percent respectively in the second quarter of 2017.

During the second quarter of 2017, the Industrial and the Services activities have recorded higher growth rates of 5.2 percent and 4.5 percent respectively, However, overall agricultural activities have reported a negative growth rate of 2.9 percent. Agriculture sector of the economy has been affected badly from the unfavourable weather conditions (severe drought as well as heavy rainfalls) prevailed during the last 18 months in many districts of the country and as a result, agriculture sector has reported negative growth rates during last 6 quarters.

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 the year 2016. The performance of services sector was underpinned specially by the sub activities of financial service activities, human health activities’ and telecommunication’ which reported significantly higher growth rate of 16.4 percent 13.2 percent and 12.4 percent respectively. In addition, wholesale and retail trade and transportation of goods and passengers which contributes in higher shares to the GDP, have expanded by 4 percent and 1.6 percent respectively.