Sri Lanka’s economy contracts by 1.5% in 3rd quarter of 2021

The Department of Census and Statistics says Sri Lanka’s economy has contracted by 1.5 percent in the third quarter of 2021.

In a press release, the department released the estimated Gross Domestic Product (GDP) at current price and at constant (2010) price in Production approach and the other macroeconomic indicators for the third quarter (July 1st to September 30th) of the year 2021.

“After the first wave of the Covid-19 pandemic in 2020 was well controlled by the government, businesses were carried out under the new normal situation as usual. At the same time, the lifestyles of the people were restored. Accordingly, the Sri Lankan economy had grown by 1.3 percent in the third quarter of 2020. GDP growth in the third quarter of 2021 is calculated from the higher level of real GDP value recorded in the third quarter of 2020.”

In its communiqué for the National Accounts Estimates of third quarter of 2021, the Census & Statistics Department revealed that the economic growth rate for the third quarter of 2021 is estimated as a negative growth rate of 1.5 percent.

It further stated that, the Gross Domestic Product at constant prices (2010) has decreased to Rs. 2,497,489 million by the third quarter of 2021 from Rs. 2,536,490 million reported in the third quarter of 2020.

In addition, the Gross Domestic Product at current prices rose to Rs. 4,132,955 million in the third quarter of 2021 from Rs. 4,087,148 million reported in the same period of 2020, recording an increase of 1.1 percent.

According to the communiqué, the three main components of the economy, “Agriculture”, “Industry” and “Services”, contributed to the Gross Domestic Product at current price by 8.7 percent, 29.9 percent, and 57.4 percent respectively, while the “taxes less subsidies on products” contributed 4.1 percent in the third quarter of 2021.

In the third quarter of 2021, the overall Agricultural activities recorded a slight positive growth of 1.7 percent. This was positively affected by the fact that the government had allowed agricultural activities to continue throughout the country even under the quarantine curfew. Industry and services-related activities recorded negative growth rates of 2.1 percent and 1.6 percent respectively during the relevant quarter. In the same quarter of last year, these activities recorded positive growth rates.

Read the complete press release issued by the Census & Statistics Department below:

Sri Lankan Economy Contracted by 1.5 Percent - Census & Statistics Dept. by Ada Derana on Scribd