The services sector is remaining dominant in the Lankan economy by contributing 58 percent to the country’s economic output in the second quarter of 2014 (April, May,June), estimates of national accounts for the 2nd quarter of 2014, released by the Department of Census and Statistics of the Ministry of Finance and Planning reveal. In the services sector, ‘Hotels and Restaurants’ report the highest rate of increase by 20.5 percent, followed by ‘Export Trade’ 11.1 percent and ‘Domestic Trade’ 10.1 percent.

The report adds: The total economic output in Sri Lanka, measured by the Gross Domestic Product for the second quarter 2014 (April, May, June) was Rs. 840,653 Million recording a positive growth rate of 7.8 percent compared to the second quarter of 2013 which was estimated as Rs. 779,974 Million.

The three main pillars of the economy, Agriculture, Industries and Services sectors has shared the GDP at constant price (2002) by 10.6 percent, 31.5 percent and 58 percent respectively in the second quarter of 2014.

The main sub sectors “Agriculture, Livestock and Forestry” and “Fishery” has achieved rates of growth of 5.9 percent and 10.5 percent respectively in 2014 second quarter, compared to 2013 second quarter. ‘Tea’ and ‘Coconut production’ showed a striking increase of 7.1 percent and 9.4 percent respectively over the corresponding time period, and sub sector ‘vegetables’ which shares the 3.3 percent of GDP, has increased by 8.9 percent during this period. Inland fishery has shown an outstanding increase of 73 percent in this quarter compared to the second quarter of 2013.

Industry sector all together shows a 12.2 percent increase within this period. Under the industry sector, ‘Gem Mining’, ‘Textile, Wearing Apparel and Leather products’ ‘Chemical, petroleum, coke, rubber and plastics” and ‘Construction’ sub 20.5 percent and this is followed by ‘Export Trade’ 11.1 percent and ‘Domestic Trade’ 10.1 percent.

Meanwhile the growth rates of sub sectors of ‘Rubber’, ‘Paddy’, ‘Minor Export Crops’ and ‘Import trade’ has decreased by 3.7 percent, 5.7 percent, 16.5 percent, and 3.3 percent respectively during the period of review.

GDP implicit price deflator which measures the price change in the economy with respect to the base year (2002=100), increased to 269.2 in the second quarter of 2014 from 255.5 in the second quarter of 2013 recording an inflation rate of 5.4 percent in the second quarter of 2014.

In the second quarter of 2014, Colombo Consumer Price index (CCPI) (2006/2007=100) is reported as 179.8. Compared to that of 173.5 in the second quarter in year 2013, it recorded 3.6 percent inflation rate in 2014 second quarter.

Source : http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=110745