Economy slows down due to inclement weather last year

Sri Lanka's economic output as measured by Gross Domestic Product (GDP) for the 4th quarter (Q4) from October-December of 2017 slowed to 3.2 percent year-on-year and the economic growth rate for the year of 2017 has been estimated as 3.1 percent.Releasing the data the Department of Census and Statistics (DCS) today attributed the slow growth rate in 2017 to the declining agricultural output due to inclement weather the country experienced since 2016.

The DCS issuing a communiqué said the Agriculture sector of the economy has been affected badly mainly due to the prevailed inclement weather with droughts as well as heavy rain during the last two years in many districts of the country. The Gross Domestic Product for Sri Lanka for the year of 2017 (January to December) at constant (2010) price has reached up to Rs. 9,315,488 Million while GDP value reported for the year of 2016 was Rs. 9,034,290 Million.

The four major components of the economy; Agriculture, Industry, Services and Taxes less subsidies on products have contributed their share to the GDP at current price by 7.7 percent, 27.2 percent, 55.8 percent and 9.3 percent respectively for the year 2017.

As a result of inclement weather, Agriculture Sector has reported negative quarterly growth rates in all quarters other than 4th quarter of 2017. During the year highest growth rate of 3.9 percent was reported for overall Industrial activities. Among the industrial activities, the 'Construction' activity, which corresponds to a considerably higher share for the industrial activities, increased by 3.1 percent.

The Services activities which corresponds to the highest contribution to the GDP have grown by 3.2 percent, compared to the previous year. The DCS reported that the GDP at constant price for the 4"' quarter of 2017 has been estimated as Rs. 2,623,541 Million registering 3.2 percent of growth rate compared to the 4thl quarter of 2016.