‘The Wonder Nation of Asia’:
Sri Lanka on track
All economic factors indicate that Sri Lanka is on a speedy march
towards winning the Economic War as well. This factor is confirmed by
the second Quarter growth rates submitted by Census and Statistics
Department which indicate higher growth rates in all sectors. The
country’s economic growth for the second quarter of this year (April to
June) has registered an 8.5 percent increase, amounting to Rs 635
billion as against the corresponding period last year which amounted to
the GDP growth of Rs 585 billion.
All sector growth
The Sectors - agriculture, industry and services have registered
significant growth rates of 5.1 percent, 9.2 percent and 8.8 percent
respectively, over the figures of the same quarter of the previous year.
As per data provided by the Census and Statistics Department, the sub
sectors which registered relative significant growth in the second
quarter are ‘Minor export crops’, 20.7 percent, ‘Paddy’, 10.3 percent
‘Fishing’, 18.3 percent, ‘Manufacturing’, 8.9 percent, ‘Construction’,
9.3 percent, ‘Wholesale and retail trade’, 8.8 percent, ‘Hotels and
restaurants’, 25.2 percent, ‘Transport and communication’, 12.9 percent
and ‘Banking Insurance and Real Estate’ 8.5 percent.
The percentage share of the three major sectors, the agriculture,
industry and services to the total GDP reported as 11.9 percent, 28.1
percent and 60 percent respectively. The ‘Agriculture, forestry and
fishing’ sectors showed a 5.1 percent growth during the second quarter.
The growth rate of miner export crops is recorded as 20.7 percent during
the second quarter this year whereas it was (-) 2 percent for the same
quarter the previous year.
revenue from fishing industry. File photo
The overall fishing industry grew by 18.3 percent in the second
quarter. Of these ‘Inland fishing’ grew by 15.7 percent and ‘Marine
fishing’ grew by 18.6 percent. The prevailing favourable rainfall for
fish growing, the extension of aquaculture activities supported the
growth of inland fish production in the North, East and North Central
Provinces. The growth of the marine fishing industry has reached a
satisfactory level following the lifting of time restriction on marine
fishing, after the end of the war. This has recorded a steep increase in
marine fish production in the Northern and Eastern Provinces amounting
to 134.1 percent and by 45.8 percent respectively.
Industry sector 9.2 percent growth
The real terms industry sector growth has registered an increase by
9.2 percent in against three percent growth in the corresponding period
last year. The growth rate of gem mining has recorded an 8.5 percent
increase contributing to export value of precious stones and semi
precious stones to increase by 11.2 percent.
The factory industry has grown by 9.2 percent. The higher growth of
factory industry was supported by the higher growth of textile, wearing
apparel and leather products by 7.9 percent, chemicals, petroleum, coal,
rubber and plastics products by 16.5 percent and non-metallic products
by 15.9 percent.
Sub sectors registered 7.5 percent increase
The growth rate for the sub sector of ‘Electricity, gas and water’ is
7.5 percent as against 4.3 percent in the second quarter of last year.
Overall electricity generation grew by 8.2 percent during the quarter
while hydropower generation recorded a 37.7 percent growth.
The construction sector has registered a 9.3 percent high growth
against 5.4 percent in the corresponding period last year. This growth
was driven by the introduction of new development projects and
large-scale projects already in operation.
The disbursement of loans for the development of houses, business
premises, other building and construction and property developments have
increased by 19.1 percent during the reference period. Cement production
increased by 23.5 percent in this quarter against a (-) 8.7 percent,
last year. Volume index of imported building materials increased by 32.1
percent in this quarter and it has decreased by 29.3 percent for the
corresponding period of last year. Highways development and widening and
improvement of roads have increased by 47.3 percent during the reference
The data shows that the service sector too recorded a 8.8 percent
growth rate due to the recovery of its major sub sectors such as
wholesale and retail trade, hotels and restaurants and transport and
construction work ata phase. File photo
The growth rate in the same quarter of 2009 however, was as low as
1.2 percent. The export trade sector recorded a 5 percent growth.
Export earnings in the second quarter amounted to Rs 211,619 million,
which was only Rs 179,264 million in the same period last year.
Hotels and restaurants 25.2 percent
The hotels and restaurant sector experienced a significant growth
with value addition indicating a 25.2 percent growth against (-) 0.4
percent of the same quarter last year. Tourist arrivals increased from
81,027 in the second quarter of last year to 118,243 in the second
quarter of this year.
Tourist earnings increased by 60.9 percent and the room occupancy
rate increased from 35.5 percent in the second quarter last year to 50.8
The Transport and communication sector has registered a 12.9 percent
growth as against that of 5.7 percent in the same quarter last year.
Passenger and goods transportation, Cargo handling, Ports and Civil
Aviation and Posts and Telecommunications indicated a growth of 13
percent, 15.9 percent and 12.1 percent respectively for this quarter.