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Sri Lanka’s Gross Domestic Product (GDP) grew by 2.7 per cent in Q3.

Sri Lanka’s Gross Domestic Product (GDP) grew by 2.7 per cent in real terms in the third quarter of 2019, recovering somewhat from the Easter Sunday attacks on April 21 2019.

This was mainly attributable to 2.8 per cent growth in Services activities, 3.3 per cent growth in Industry activities and 0.4 per cent growth in Agriculture activities in value added terms, Central Bank announced.

The Department of Census and Statistics (DCS) stated that the G DP for Sri Lanka for the third quarter of 2019 at current price and constant (2010) price have reached up to Rs.4,027,051 million and Rs.2,507,363 million respectively.

This was against the current and constant (2010) prices of G DP reported for the third quarter of 2018 which was recorded as Rs.3,692,822 million and Rs.2,441,796 million respectively.

The four major components of the economy; 'Agriculture', 'Industry', 'Services' and 'Taxes less subsidies on products' have contributed their share to the GOP at current prices by 6.9%, 26.8%, 60.0%, and 6.2% respectively in the third quarter of 2019.

During the third quarter of 2019, Industry and Services activities recorded substantial growth rates of 3.3% and 2.8% respectively, while Agriculture activities recorded a slight positive growth rate of 0.4%.

Manufacturing activities expanded in November 2019, yet at a slower rate compared to October 2019 while the services sector continued to expand last month at a higher rate compared to the same month in 2018.

The reserve money increased compared to the previous week mainly due to the increase in currency in circulation, CB said adding that the total outstanding market liquidity was a deficit of Rs. 18.915 bn by end of the week, compared to a surplus of Rs. 0.818 bn by the end of last week

During the first eight months of 2019, government revenue as a percentage of estimated GDP declined to 7.8 per cent from 8.6 per cent recorded in the corresponding period of 2018.

During the same period, total expenditure and net lending as a percentage of estimated GDP increased to 12.4 per cent from 12.2 per cent recorded in the corresponding period of 2018.

(LI)