Sri Lanka recorded an eight percent Gross Domestic Product (GDP) growth rate in the third quarter of 2010; the second highest ever recorded quarterly GDP growth since 2002.

According to the figures released by the Department of Census and Statistics, the economic output of Sri Lanka as measured by GDP for Q3 (July-September), of 2010 at constant (2002) prices is estimated at Rs 690.7 billion as against Rs 639.3 billion in the Q3 of 2009.

The report refers to the three major sectors of the economy; Agriculture, Industry, and Services which registered significant growth rates such as 6.2 percent, 8.8 percent and eight percent respectively, in the Q3 of 2010 over the same quarter of previous year. The percentage share of the three major sectors, the Agriculture, Industry, and Services to the total GDP is reported as 12.0 percent, 28.5 percent and 59.5 percent respectively.

The “Agriculture, forestry, and fishing” sector showed a 6.2 percent growth during the Q3 of 2010 as against the growth of (-) 0.5 percent during the same quarter previous year. The growth rate of tea production is registered as two percent for the Q3 2010 as against (-) 2.1 percent for the Q3 2009. The value added of rubber production grew by 15.9 percent for this quarter as against the (-) 3.4 percent the same quarter of the last year.

The real terms value added of the industry sector grew by 8.8 percent in the Q3 2010 against 4.4 percent growth in Q3 of 2009. The manufacturing sector which is the largest portion of industry sector grew by 6.5 percent in the Q3 of 2010.

The higher growth of factory industry was supported by the higher growth of Chemicals, Petroleum, rubber and plastic products by 9.8 percent, Non-metallic mineral products by 11.3 percent and Fabricated metal machinery and equipment by 9.7 percent and Textile, wearing apparel and leather products by 3.2 percent.

Construction sub sector grew by 11.3 percent in the Q3 of 2010 as against 6.4 percent growth in the same quarter previous year. This Q3 growth is the highest ever recorded quarterly growth achieved since 2002.

The overall service sector marked eight percent growth in the Q3 2010 against 5.1 percent growth in the same quarter of 2009 marking the ever highest growth in a third quarter since 2002. This recorded 8 percent high growth in Q3 2010 has been boosted by the promising higher growth of its major sub sectors such as Hotels and restaurants by 32.2 percent, Transport and communication by 12.4 percent, Banking, insurance and real estate by 8.5 percent, and Wholesale and retail trade by 7.7 percent.

The export trade sector grew by 1.2 percent at constant prices for the Q3 2010. According to trade indices of CBSL, export volume and export price level increased by 0.9 percent and by 4.7 percent respectively during the reference quarter.

The import trade sector grew by 11.8 percent in the reference period as against a 1.5 percent drop in the same quarter of the previous year. Domestic trade sector grew by 7.7 percent in the Q3 2010.