Sri Lanka’s Southern province has become the fastest growing region (amongst the island’s nine provinces) in terms of contribution to the island’s overall GDP growth in 2014, the Central Bank of Sri Lanka said this week.
Accordingly, the Southern Province recorded a growth rate of 11.1 per cent followed by North Western province which recorded a 9.3 per cent of nominal growth rate in 2014.
Further, in 2014, the North Central, Uva and Northern provinces grew by 8.7, 8.5 and 8.3 per cent, respectively. The Western province recorded a nominal growth rate of 5.9 per cent in 2014.
“Reflecting the overall developments taking place in the country’s economic environment, all provinces recorded healthy nominal growth rates in their Provincial Gross Domestic Product (PGDP) in 2014, ranging in between 5.9 per cent to 11.1 per cent,” the Central Bank said.
The release added that continuing the trend observed in the recent past, the share of the Western province in the GDP had moderated further in 2014 reducing disparities between provinces. However, the Western province remained the frontrunner providing the highest contribution of 42.0 per cent to GDP in 2014, as in previous years while the Southern province accounted for the second highest contribution of 10.8 per cent in 2014, compared to 10.4 per cent in 2013.
The third highest contribution of 10.7 per cent was recorded in North Western province in 2014 and the contribution from Central province was 10.4 per cent. The contributions of the Sabaragamuwa and Eastern provinces decreased by 0.1 per cent each to 6.7 per cent and 5.8 per cent, respectively, in 2014. Compared to 2013, North Central provincial GDP contribution increased to 5.1 per cent in 2014 from 5.0 per cent in 2013. Likewise, Uva province contribution also increased from 4.9 per cent in 2013 to 5.0 per cent in 2014. The Northern province contributions in 2014 was 3.6 per cent compared to 3.5 per cent in 2013.
The Sri Lankan economy reached an annual real GDP growth of 4.5 per cent in 2014, while the nominal GDP recorded a growth of 7.3 per cent to Rs. 10,292 billion. The disaggregation of nominal GDP across provinces is given in Table 1.
PGDP for 2014 has been computed by the Statistics Department of Central Bank of Sri Lanka (CBSL), based on the disaggregation of the rebased (2010 constant prices) series of National Accounts estimates by the Department of Census and Statistics (DCS). In the estimation of PGDP, the value of each line item in GDP (base year 2010) is apportioned using relevant indicators at provincial level.
Sectoral Contributions to the PGDP
The sectoral contribution to PGDP of the provinces is given in Table 2. Considerable variations in the structure of the PGDP can be observed across the provinces in 2014. The Agriculture sector accounted for 2.1 per cent of the GDP in the Western province in 2014, whereas it accounted in the range of 11.3 to 17.2 per cent of the GDP in the other provinces. The contribution of the Agriculture sector to the PGDP increased in C entral, Southern and North Central provinces in 2014, while the same decreased in all the other provinces. The Industry sector contribution to PGDP decreased or remained unchanged in 2014 in all provinces except Northern and North Western provinces. In 2014, the largest contribution to PGDP from industry sector was observed in the Western province and the lowest from the Northern province.
The Services sector was the most dominant sector accounting for between 55.2 per cent and 67.0 per cent of the PGDP in different provinces in 2014. The contribution from the Services sector decreased marginally in the Southern and Northern provinces, but increased in all other provinces during 2014.