Encouraging performance in Lanka’s economy in 3Q, 2008
Despite the global financial crisis and economic slow down, the Sri
Lankan economy has shown an encouraging performance during the third
quarter of 2008, the Department of Census and Statistics said.
The National Accounts report of the third quarter 2008 released last
week said that the GDP growth rate during the quarter was 6.3%, however,
lower than 7.0% in the corresponding quarter last year.
The report said that the economy faced a number of challenges such as
high inflation, escalation of the conflict in the North and external
factors such as global financial crisis, which had a significant impact
from September.
The reduction of the crude oil price has contributed to the positive
economic performance during the period. It made the financial management
more comfortable, the report said.
All three sectors of the economy, agriculture, industries and service
have shown an encouraging performance.
The agriculture sector recorded 12.4% growth and accounts for 13% of
the GDP. The industry sector grew by 5.6% and the services sector by
5.5% during the period. The inflation based on the GDP Implicit Price
Deflator remained at 18.5% while it was 13.8% during the third quarter
2007. The Colombo Consumers’ Price Index [(CCPI) 2002=100] has shown a
25.2% quarterly price increase compared to 16.0% in the corresponding
quarter last year.
The total value of imports as a percentage share of GDP is 34.7%
while the total value of exports is 20.9% of GDP during the period.
The most significant development during the period is the impressive
growth in the agricultural sector.
The agriculture sector has posted a 12.4% high growth rate, during
the quarter. Paddy production during the Yala season, increased by
50.5%, the report said.
The boost in paddy production was backed by the high price of rice,
guaranteed paddy purchasing price, government agricultural policies
including fertiliser subsidies, high prices for cereals in the world
market and favourable rainfall that prevailed all over the country.
This is characterised from the cultivated land increases for paddy
in almost all districts.
GW
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