Sri lanka News – Sri Lanka’s gross domestic product (GDP) contracted 8.4 percent year-on-year in the second quarter of 2022, the state statistics office said, as the country is caught in its worst currency crisis in the history of intermediate regime central bank.
Agriculture contracted 8.4 percent, industry 10 percent and services 2.2 percent.
In rupee terms, the economy inflated 33 percent.
Power cuts, fuel shortages, lack of imported raw materials, fertilizer and disruptions in passenger transport hit the economy, the statistics office said.
Sri Lanka’s rupee collapsed in 2022 to 360 to the US dollar in a failed float with a surrender requirement after two year of money printing triggered severe forex shortages.
Sri Lanka defaulted in May 2022 for the first time.
In Agriculture, growing of cereals contracted 32.3 percent compared to the same quarter a year ago, tea fell 19.7 percent, paddy was down 15.6 percent, marine fishing slipped 15.3 percent, rubber declined 13.7 percent, animal production slided 13.6 percent, and growing of vegetables was down 13.2 percent.
But fresh water fishing was up 11.2 percent, Coconut rose 10.5 percent, forestry and logging grew 9.0 percent and spices edged up 3.2 percent).
In industry, manufacturing contracted by 5.3 percent during the quarter. But textiles, wearing apparel and leather related products surged 28.2 percent.
Manufacture of food, beverages and tobacco products declined 11.0 percent. Manufacturing of refined petroleum products fell 78.0 percent.
Construction, which accounts for 9.5 percent of GDP, has fallen 16.2 percent. Mining and quarrying fell 26.7 percent
In services sector, insurance services fell 16.8 percent, programming and broadcasting activities was down 8.4 percent, ownership of dwelling and real estate activities declined 6.0 percent and goods and passenger transport and warehousing activities fell 0.7 percent.
IT programming consultancy and related activities’ which has a 1.9 percent of share to the GDP, has contracted 4.3 percent.
The electricity and power disruption, fuel shortage, forex regulations, uncertain operating environment and civil unrest has hit the second quarter growth.
Accommodation, food and beverage serving activities grew 35.3 percent, postal and courier services jumped 11.7 percent, telecommunication services rose 8.6 percent, educational services increased 5.0 percent and wholesale and retail trade firmed 1.7 percent. (Colombo/Sept15/2022)