Lanka’s economy records impressive growth

by Uditha Kumarasinghe

Sri Lanka’s economy registered an impressive growth of 7.8 percent during the first half of 2010, displaying strong recovery after the depressed growth rate in 2009 and the renewed growth momentum after the war against terrorism ended.

With the strengthening of macro economic stability, the domestic economic outlook has become more promising in the backdrop of a gradual recovery of the global economy.

According to the Fiscal Management Report 2011 presented by President Mahinda Rajapaksa as Finance and Planning Minister, the GDP growth for the full year 2010 is likely to be in the range of 7.5 to 8 percent. The growth is broadbased, with higher growth rates projected in most sectors of the economy.

The domestic economy grew by 7.8 percent during the first half of 2010 compared to 1.9 percent during the corresponding period of 2009. All sectors of the economy contributed strongly to the high economic growth recorded during the first half of 2010.

According to the report, the agricultural sector grew by 7.2 percent while the gradual revival of the global and domestic demand, industry sector grew by 8 percent.

The services sector which recorded the lowest sectoral growth during the first half of 2009 has expanded by 7.8 percent in the first half of 2010 reflecting mainly the recovery of the external trade and tourism related activities, the report said.