COLOMBO: The Sri Lankan economy grew by 3.3 percent during the third quarter of 2017 (3Q17) compared to the corresponding quarter of last year, with continued contraction in the agriculture sector and slower growth in industrial activity contributing to the low growth rate, according to the Census and Statistics Department. This was slower than the 4 percent GDP growth recorded for 2Q17 and 4.6 percent in the third quarter of the previous year (3Q16). Gross Domestic Product (GDP) for the third quarter was valued at Rs. 2.4 trillion. The services sector, which contributed 56.3 percent to GDP, increased by 4.3 percent year-on-year (YoY).
The manufacture of metal products and non-metallic mineral products increased by double digits YoY. However, the industrial sector was weighed down by food, beverage and tobacco production—contributing 8.6 percent to GDP—which fell by 2.4 percent YoY.
Construction activities, which made up the second largest portion of industrial activities, grew by 2.6 percent YoY.
Meanwhile, the agriculture sector, which contributed 7.6 percent to GDP and was affected by severe drought and heavy rainfall during the past 24 months, contracted by 3.3 percent YoY, thereby continuing the negative growth witnessed in the past seven quarters.
Cultivation of rice, coconuts, vegetables and spices, as well as marine fishing recorded declines, with both rice and coconut value-addition to the economy falling sharply by 32.5 percent and 20.8 percent YoY respectively, contributing to increased inflation during the period as well.
However, rubber and tea cultivation recorded positive growth rates of 22.7 percent and 17.0 percent YoY respectively, while animal production and fresh water fishing grew as well.