Sri Lanka’s Department of Census and Statistics (DCS) last week released its preliminary estimates of the current and constant annual Gross Domestic Product (GDP) for the second Quarter of 2015 based on production approach following rebasing exercise undertaken by the Department.
Accordingly, the total economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the second quarter of 2015 (April, May, June) reportedly increased up to Rs.2,064,644 million. GDP reported for the second quarter of 2014 was Rs. 1,934,814 million resulting a positive growth rate of 6.7 percent for the second quarter of 2015.
In the second quarter of 2015, the highest contribution for the GDP as in previous quarters, gives mainly through Services activities. The share is 61.2 percent. Thereafter Industry and Agriculture, forestry and fishing activities has shared the GDP by 23.5 percent and 7.5 percent respectively.
The value added of the each economic activity is derived by deducting intermediate consumption from the gross output value. Although the Intermediate consumption is estimated at purchaser’s price, the output of the economic activities is estimated at basic price. Hence the value added is reported at Basic price. The Gross Domestic Product of an economy is valued only at market price. Therefore to calculate the Gross Domestic Product, the taxes should be added up to the gross value added of the total economy and then the subsidies should be deducted.
Accordingly, in the new series of National Accounts, the Gross Domestic Product of the economy has been derived by adjusting the ‘taxes less subsidies on products’ to the total Gross Value Added.
The Agriculture, forestry and fishing activities shows 5.0 percent growth and the Industry activities record a slight growth rate of 2.0 percent in the second quarter of 2015, when compared to the respective quarter of 2014.
The sub activities in Agriculture, which reported higher growth rates compared to the second quarter of 2014 are ‘Growing of cereals (except rice)’ by 24.0 percent, ‘Growing of rice’ by 66.2 percent. In addition ‘Growing of vegetables’, ‘Growing of fruits’, ‘Growing of oleaginous fruits including coconut’, ‘Growing of spices, aromatic, drug and pharmaceutical products’ and ‘Marine fishing and marine aquaculture’ increased slightly by 3.9 percent, 3.8 percent, 4.3 percent, 2.0 percent and 7.5 percent respectively in the second quarter of 2015.
In the meantime the sub activities of, ‘Growing of tea’, ‘Growing of rubber’, and ‘Fresh water fishing and fresh water aquaculture’, showed a negative growth rates as 7.2 percent, 24.0 percent and 21.9 percent respectively.
The sub activities in Industry, which reported higher growth rates compared to the second quarter of 2014 are ‘Manufacture of rubber and plastic products’ by 12.5 percent, ‘Manufacture of basic metals and fabricated metal products’ by 22.8 percent, ‘Manufacture of machinery and equipment’ by 12.5 percent, ‘Manufacture of furniture’ by 13.6 percent, ‘Other manufacturing and repair and installation of machinery and equipment’ by 11.8 percent, ‘Sewerage, waste, treatment and disposal activities’ by 26.0 percent and ‘Construction’ by 6.4 percent. In addition a slight increase in the growth rates are recorded by the sub activities of ‘Manufacture of food, beverages and tobacco products’, ‘Manufacture of chemical products and basic pharmaceutical products’, ‘Electricity, gas, steam and air conditioning supply’ and ‘Water collection, treatment and supply’.
In the meantime the sub activities of ‘Mining & quarrying’, ‘Manufacture of textile & wearing apparel’, ‘Manufacture of wood and product of wood and cork, except furniture’ ‘Manufacture of coke and refined petroleum products’ and ‘Manufacture of other non-metallic mineral products’ reported negative growth rates in second quarter of 2015, with compared to the second quarter of 2014, as 5.1 percent, 5.9 percent, 17.0 percent, 32.0 percent and 10.0 percent respectively.
In the second quarter of 2015, most of the service activities have shown positive growth rates as in previous quarters. Out of that, ‘Postal and courier activities’ has recorded a striking growth rate of (26.7 percent) in the value added in this quarter when compared with the previous quarter in 2014.
In addition, ‘Accommodation, food and beverage serving activities’, ‘Telecommunication’, ‘Financial service activities and auxiliary financial services’, ‘Insurance, reinsurance and pension funding’, ‘Real estate activities, including ownership of dwelling’ and ‘Other personal service activities’ have recorded higher growth rates in the second quarter of 2015, as 11.2 percent, 19.4 percent, 13.7 percent, 9.6 percent, 15.5 percent and 10.0 percent respectively.
While, the sub activities of ‘IT programming and consultancy services’ and ‘Professional services’, showed a negative growth rates as 2.6 percent and 15.0 percent respectively in this quarter.