Local Economy Contracts By 1.5% In The 3rd Quarter Of 2021
Posted 17,December

By Chaveendra Dunuwille

In Local News

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The third Co-vid 19 wave, which started in April and peaked in August 2021, had a significant impact on the growth of the local economy, and the latest data released by the Department of Census and Statistics of Sri Lanka reflect the gravity of the situation. 

Despite the government desperately trying to keep the agricultural, industrial, and services sector active during this period, the country’s economic growth has contracted by 1.5%. The data released showed that the Gross Domestic Product (GDP) based on 2010 constant prices decreased from LKR 2,536,490 million in 3Q 2020 to LKR 2,497,489 million in 3Q 2021. The GDP at current prices showed a 1.1% increase in 2021 with LKR 4,192,955 million from a previous LKR 4,087,148 million. 

The Agriculture sector contributed 8.7% to the GDP while the Industries and Services sectors contributed 29.9% and 57.4%. Additionally, the “taxes less subsidies on products” contributed 4.1%. 

The Agriculture sector recorded a slower overall growth of 1.7% compared to the previous year, 3.1%, and said slow growth was reflected in almost all commercial crops. The Industries sector saw a negative overall growth of 2.1% while contracting by 0.6%. While some industries saw positive growth, most enterprises were in the negative. With the slowing down of the transport and goods & passenger services, the sector declined by 1.6%.