Department of Census and Statistics last week said that Sri Lanka’s economic growth rate for Q1 of 2017 was estimated at 3.8%. The GDP for the first quarter of 2017 was Rs. 2,161,770 million against last year’s figure, Rs. 2,082,544 million.
“Severe drought condition prevailed mainly in four provinces: Northern, Eastern, North-Central and North-Western from 2016 had an unfavorable impact, mainly on agricultural activities of the country,” a communiqué from the statistics department noted.
The four major components of the economy: Agriculture, Industry, Services and Taxes less subsidies on products have contributed their shares to the GDP at current price as 7.0 percent, 30.8 percent, 52.3 percent and 9.9 percent respectively for Q1 of 2017. In this quarter, the highest growth rate of 6.3 percent was reported for Industrial activities while service activities reported a growth rate of 3.5 percent.
Amidst unfavorable weather conditions, performance of agricultural activities further contracted and reported a negative growth rate of 3.2 percent. The ‘Construction’ activity which corresponds to the highest share of the GDP among the industrial activities further increased remarkably by 16.1% during this quarter compared to the same quarter in 2016. In addition significant growth rates reported for sub activities of ‘Water Collection, treatment and supply’ ‘Manufacture of other non-metallic and mineral production’, ‘Manufacture of machinery and equipment’ and ‘Mining and Quarrying’ by 21.6%, 19.5%, 18.2% and 17.9% respectively, reinforcing the growth of the industry sector.