30 March 2022 09:31 am Views - 168
Sri Lanka’s economy grew 3.7 percent in the year 2021, with the fourth quarter growth coming at 1.8 percent, the data released by the Department of Census and Statistics (DCS) yesterday, showed.
The positive growth for the year was recorded in the backdrop of a 3.6 percent contraction in the economy in 2020. The 2020 fourth quarter growth was recorded at 1.3 percent.
During 2021, all three major economic activities grew moderately, with agriculture growing 2 percent, industrial activities growing 5.3 percent and services activities growing 3 percent.
Agriculture contributed 9 percent to gross domestic product (GDP) at current prices, while industrial activities contributed 27.8 percent. The contribution of services activities was 57.5 percent.
‘Taxes less subsidies on products’ also accounted for a 5.7 percent share of GDP.
The DCS identified the less stringent COVID-19-related restrictions in the economy, compared to 2020, as the key reason that helped the country to post a positive growth rate for the year 2021.
The reported growth rates for the first, second and third quarters of 2021 were 4.2 percent, 12.4 percent and -1.5 percent.
Although the COVID-related restrictions did not largely apply to the agriculture sector, such activities only managed to record a modest 2 percent growth, which was perhaps due to the government’s irrational ban on chemical fertilisers and agro chemicals.
The DCS said growing of fruits, rice, vegetables and rubber reported contraction in 2021. However, growing of tea expanded by 7.4 percent.
The expansion of the industrial activities in 2021 was led by textile and apparel manufacturing and manufacturing of food, beverages and tobacco products. The construction activities, which corresponded to a 6.8 percent share within the industry sector, recorded a positive growth of 1.9 percent. However, manufacture of coke and refined petroleum products contracted 30.5 percent, as Sri Lanka imported large volumes of refined petroleum products in 2021. Meanwhile, the services sector expanded in 2021, with increased activity in the IT industry, telecom, financial services, insurance, healthcare and education.
However, accommodation, food and beverage and all activities related to entertainment, which had a direct co-relation with the COVID-19 pandemic, are yet to achieve positive growths.