Provincial Per Capita Income up in 2011
Provincial Per Capita Income including the North East increased In
2011, the GDP at constant prices (real terms) grew by 8.3 percent, while
the GDP at current market prices (nominal terms) grew by 16.7 percent
and amounted to Rs. 6,543 billion with a per capita income of Rs.
313,511 (US $ 2,836).
Continuing the trend observed in the recent past, the share of the
Western province in the GDP, declined further in 2011 reducing disparities
between provinces. However, the Provincial Gross Domestic Product (PGDP)
of the Western province also grew at a healthy rate of 15.6 percent
largely underpinned by the expansion in manufacturing and trade. The
Northern province recorded the highest nominal growth rate and increased
its share of the national economy driven by an expansion in agriculture,
fishing, construction, transportation and financial services. The North
Western and Southern provinces had the next highest growth rates and
also increased their share of the GDP.
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Some of the new houses for North East residents |
These two provinces benefitted from greater contributions from trade,
manufacturing, financial services and transport while the Southern
province largely benefitted from the high growth momentum in the
construction sector.
The nominal growth rates in the Eastern and North Central provinces
moderated and recorded a decline in their shares of the GDP, due to a
setback in the Agriculture sector as a consequence of adverse weather
conditions that prevailed in the first quarter of 2011. The nominal
growth of the Central province GDP also decelerated and its share
declined, with the drop in hydro - power generation in the second half
of 2011.
Provincial GDP growth rates
All provinces recorded double digit nominal growth rates in their
PGDP in 2011. The Northern province recorded the highest growth rate of
27.1 percent, in nominal terms, in 2011. The PGDPs of North Western and
Southern provinces grew by 21.9 percent and 21.4 percent, respectively.
However, the growth rates of the Eastern, North Central, Central and
Sabaragamuwa provinces decelerated in 2011 compared to 2010.
The main reason for the high growth in the Northern province was the
improved performance in the agriculture sector. The paddy production of
the Northern province increased by 90 percent to 210 million kilograms
in 2011 compared to 2010. Significant increases in both inland and
marine fish production in the Northern province also contributed to this
high growth in 2011. The marine and inland fish production of the
Northern province increased by 38 percent and 165 per cent to 46,370 and
2,150 metric tons, respectively in 2011. This high growth witnessed in
the Northern province was also supported by the expansion of banking
services, with 34 new branches established in 2011.
The increased economic activities due to major infrastructure
development projects including Southern highway, Mattala airport and
Hambantota port, as well as better performance in the tourism sector
contributed largely to the high growth of 21.4 percent in the Southern
province GDP. The noticeable growth in the manufacturing sector and
financial sector helped the North Western province to record 21.9
percent growth in it’s GDP in 2011.
Meanwhile, Eastern, North Central, Central and Sabaragamuwa provinces
have shown a marginal deceleration in their growth rates in 2011.
Adverse weather conditions that prevailed during the first quarter of
2011, adversely affected the performance in agriculture sector in both
Eastern and North Central provinces.
Paddy production of Eastern and North Central provinces decreased by
39 per cent and 3 percent to 650 and 1,144 million kilograms,
respectively, in 2011. In addition, vegetable production in both Eastern
Provincial Per Capita Income Per capita of all provinces have increased
in 2011. The per capita income of the Western province at Rs. 490,724
was 1.6 times the national per capita income in 2011. The per capita
income in all other provinces remained below the national average of Rs.
313,511.
There were considerable variations in the structure of the PGDP
across the provinces. The Agriculture sector accounted for around 3
percent of the GDP in the Western province in 2011, whereas it accounted
for 15 - 30 per cent of the GDP in the other provinces. The contribution
of the agriculture sector to the PGDP decreased in all provinces in
2011, except the Western and Northern provinces. The industry sector
contribution to PGDP increased in 2011 in all provinces, except for
Central and North Western provinces.
As in 2010, the largest contribution to PGDP from industry sector was
observed in the Southern province. The Services sector was the most
dominant sector accounting for between 49.6 percent and 64.1 percent of
the PGDP in different provinces.
The contribution from the Services sector declined in the Western and
Northern provinces, but increased in all other provinces during 2011. |
