Sri Lanka’s economy grows 12.3% in Q2 2021 amidst Covid pandemic
Thu, Sep 16, 2021, 12:04 pm SL Time, ColomboPage News Desk, Sri Lanka.
Sept 16, Colombo: Sri Lanka’s economy grew at a positive rate of 12.3 percent during the second quarter of this year, compared to a negative growth rate of 16.4 percent in the second quarter of 2020, the Census and Statistics Department said releasing the GDP Summary Indicators for the 2nd Quarter 2021.
The Department of Census and Statistics (DCS) Sri Lanka, has released the estimated Gross Domestic Product (GDP) at current price and at constant (2010) price in Production approach and the other macroeconomic indicators for the second quarter (April 1st to June 30th) of year
Further, the Gross Domestic Product for Sri Lanka for the second quarter of 2021 at constant price has increased up to Rs. 2,170,052 million from Rs. 1,932,319 million which recorded in the second quarter of 2020.
However, according to the DCS, the economy still has not reached at least the GDP level, reported in the second quarter of 2019.
In addition, the Gross Domestic Product for Sri Lanka for the second quarter of 2021 at current price has increased up to Rs. 3,626,482 million from Rs. 3,007,345 million which recorded in the second quarter of 2020 registering 20.6 percent of change in the current price GDP.
The three major economic activities of the economy; ‘Agriculture’, ‘Industry’ and ‘Services’ have contributed their share to the GDP at current prices by 9.2 percent, 27.0 percent and 57.9 percent respectively, while ‘Taxes less subsidies on products’ component has contributed 5.8 percent of share to the GDP in the second quarter of 2021.
During the second quarter of 2021 all three major economic activities, recorded significant positive growth rates of 8.1 percent, 22.1 percent and 7.5 percent respectively by Agriculture, Industrial and Services activities. These recorded high growth rates come back as a result of the contraction reported in these activities in second quarter last year.
In the second quarter of 2021, due to the permission given by the government to continue their work in all the agriculture related activities even under this lock down period, the agriculture activities as a whole have reported a substantial expansion by 8.1 percent when compared to the 8.2 percent of negative growth recorded in the second quarter of 2020.
During the second quarter of 2021, the overall industrial activities have reported a considerable level of growth by 22.1 percent. However, the level of value of Gross value addition in the industrial sector, has not reached even the 2019 level. This high positive growth is basically due to the drawback in the second quarter in the year 2020.
The Service sector too reported a moderate growth of 7.5 percent. However, still the many services activities are in the stage of recovering and has not met the expected levels.