Sri Lanka's economic growth positive at 3.2% in Q1 2018

Sri Lanka's economy grew at a positive rate of 3.2 percent during the first quarter of this year, the Census and Statistics Department said on Monday(18th) releasing the GDP Summary Indicators for the 1st Quarter 2018.

According to a Department statement, the total economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the first three months of 2018 reached up to Rs. 2.224 trillion compared to the Rs. 2.155 recorded for Q1 2017.

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 prices by 7.0 percent, 30.4 percent, 53.6 percent and 8.9 percent respectively for the first quarter of 2018.

In the first quarter of 2017, the overall industry activities further expanded significantly recording 6.3 percent growth rate. In this quarter, the agricultural activities have expanded by 4.8 percent, while in the first quarter of 2017 it recoded a 4.4 percent contraction.

Agriculture sector which recorded negative growth rates consecutively over several quarters due to unfavorable weather conditions, seems to be recovered and commenced recording positive growth rates since fourth quarter 2017, the Department of Census and Statistics said. .

Industrial activities have expanded marginally, recording 1.0 percent of growth rate during this period. Service activities have further expanded by 4.4 percent in the first quarter 2018 compared to the same quarter in the year 2017.

While the Central Bank of Sri Lanka projects an economic growth of 5 percent for this year, the World Bank projects the economic growth to rebound in 2018 from a low base and continue to be around 4.5 percent in the medium term.