Economy grows 3.7 percent in 1Q

Strong recovery in agriculture amid favourable weather gave a boost to the reeling economy in the first quarter of 2019 (1Q19), as the economic growth for the three months was recorded at 3.7 percent from a year earlier, the data released by the Department of Census and Statistics, showed.

Sri Lanka economy grew 1.8 percent in the previous quarter (4Q18).

However despite the recovery in growth in 1Q19, the economy is expected slump this year following the Easter terrorist attacks that delivered a lethal blow to the country’s booming tourism sector, which account for over 5 percent of the GDP.

During 1Q19 agricultural activities expanded by 5.5 percent compared to 5.1 percent a year earlier while the industrial activities grew 3 percent compared to 1.7 percent. The services sector activities expanded by 4.1 percent.

The four major components of the economy—agriculture, industry, services and taxes less subsidies on products have contributed their shares to the GDP at current price by 6.9 percent, 31.6 percent, 53.9 percent and 7.7 percent respectively in this quarter.