Agriculture hit by drought, tea and paddy in 1stQ 2014
View(s):The total economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the first quarter of 2014 (January-March) reached Rs. 857.5 billion compared to the first quarter of 2013 which was reported as Rs. 797.8 billion, up 7.6 per cent overlast year’s 3-month growth, the Ministry of Finance and Planning said on Wednesday.
Releasing quarterly growth figures at the same time as the Central Bank, the Ministry said the three main pillars of the economy – Agriculture, Industries and Services sectors shared the GDP at constant price (2002) by 11.5 per cent (0.2 per cent in 2013), 32.7 per cent (12.6 per cent) and 55.8 per cent (6.5 per cent), respectively in the first quarter of 2014.
The Ministry said in a detailed media release that the Colombo Consumer Price index (CCPI) showed first quarter 2014 inflation quarter at 4.2 per cent.
Agriculture
Tea production fell by 10 per cent due to the drought recorded in tea grown areas especially in Ratnapura, Kalutara, Galle and Matara districts, compared to a 9 per cent increase in the same quarter of 2013.
The value addition of rubber dropped by 1.1 per cent compared to a 23 per cent decrease in the same 2013 quarter. The average price for one kilogram of Latex rubber fell by 20.8 per cent in this quarter.
In coconut, the quarter shows an increase in the production of nuts by of 41.8 million while producer prices also recorded an increase of 15.7 per cent compared to the first quarter in the last year.
Paddy production fell by 15.7 per cent.
Industry
Industry sector showed a percentage growth of 12.6 in the first quarter of 2014 compared to the growth of 10.7 it the first quarter of 2013.
Factory industry grew by 9.6 per cent in the first quarter of 2014. The major contributors to this sub sector, ‘Food Beverages and Tobacco’ and ‘Textile Wearing Apparels and Leather Products’ showed growth rates of 9.6 per cent and 16.5 per cent, respectively.
Services
In the first quarter of 2014, value addition of the Hotels and Restaurant sector recorded a higher growth of 23.2 per cent compared to the growth of 18.6 percent reported in first quarter 2013. Tourist arrivals increased to 421,501 in the first quarter of 2014, from 333,719 in 2013.