Lanka’s North records highest GDP growth in 2012, CB says
View(s):While the Western province, which includes Colombo and Gampaha provided the highest contribution to GDP last year, its share in overall growth declined to 43.4 per cent from 44.2 per cent in 2011 while the higher rise in growth was seen from the North.
This is revealed in the latest figures of regional growth released by the Central Bank (CB) this week.
Sri Lanka’s GDP at constant prices (real terms) grew by 6.4 per cent in 2012, while the GDP at current market prices (nominal terms) grew by 15.9 per cent to Rs. 7,582 billion with a per capita income of Rs. 373,001 (US$2,923).
The Provincial Gross Domestic Product (PGDP) of the Western province grew at a rate of 13.7 per cent benefitting from the continuous growth in the manufacturing, construction, transportation and trade sectors. In 2012, the highest nominal GDP growth rate was observed in the Northern province with improved contribution to the national GDP from construction, financial services, transportation, paddy and fish production sectors.
The Eastern province registered the second highest growth in the GDP with an increase in its GDP share to 6.3 per cent in 2012 from 5.8 per cent in 2011.
The CB said all provinces recorded double digit nominal growth rates in their PGDP in 2012. The Northern province recorded the highest growth rate of 25.9 per cent, in nominal terms, in 2012 which was similar to the trend observed in 2011. The PGDP of Eastern and Southern provinces grew by 25.0 per cent and 21.3 per cent, respectively in 2012. The growth rates of the Northern, Eastern and Southern provinces were higher than the country’s nominal growth rate of 15.9 in 2012.
The main reason for high growth in the north was the improved performance in industry and services sectors. The construction sector of the province expanded due to construction activities such as the northern road connectivity project, road widening projects, Kankasanturai harbour project, water projects, etc carried out in 2012.
This high growth was also supported by the expansion of banking services, with 25 new branches being established in 2012.
comments powered by Disqus