Sri Lanka continued with its positive growth momentum by maintaining an 8.4 percent economic growth in the third quarter of this year.
The country maintained its growth rate at around 8.3 percent during the year and this positive sentiment is expected to continue. The economy grew by 8.2 percent in the second quarter. For the first time the construction industry became a major contributor to the economy by showing a 17.3% growth which is a record.
The Mining and Quarry sector also showed a 19.6% growth. While the agriculture sector grew 6.2 percent in the third quarter up from 6.0 percent a year earlier, the paddy sector which is now having a surplus saw a growth 12.4 percent.
The tourism sector which saw a record 800, 000 arrivals last Monday also saw a positive growth with the hotels and restaurants showing a growth of 27.2 percent. Sri Lanka’s factory industry grew 7.9 percent, apparels growing 10.2 percent, chemicals and petroleum grew 8.1 percent, electricity grew 7.0 percent and construction grew 17.3 percent.
“The Ministry’s five year plan for the Industrial Sector as well as the Textile Sector (2011-2015) envisages streamlining the set targets for a highly value added knowledge based internationally competitive and diversified sector along with highly skilled workforce,” Industry and Commerce Minister Rishad Bathiudeen said.
In 2010, the Industry sector was able to record the highest sectoral growth of 8.4% contributing 28.7% to the GDP. In the first two quarters of 2011 it recorded 11% and 9.5% growth respectively.
“With the 10.8% rise, we are back to promising first quarter levels,” Minister Bathiudeen said.
The Sri Lankan economy was estimated to have grown by 8.0% in the first half of 2011 compared to the growth rate of 7.8% recorded in the first half of 2010, particularly with the support of the improved domestic and external demand.
The Industry and Services sectors grew by 10.3% and 9.1%, respectively during the first half of 2011.
Historically, from 2003 until 2011, Sri Lanka’s average quarterly GDP growth was 6.26 percent reaching a historical high of 8.6 percent in December of 2010 and a record low of 1.50 percent in March of 2009. Remittances also constitute an important part of country’s revenue. With an economy worth $ 56 billion (2011 IMF estimate) ($ 140 billion PPP estimate), and a per capita GDP of about $ 7000 (PPP), Sri Lanka has mostly had strong growth rates in recent years.
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