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Tuesday, December 28, 2010 - 04.28 GMT |
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Service sector grows by 8.0 %, 2010 |
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The overall service sector marked 8.0 percent growth in the Q3 2010 against 5.1 percent growth in the same quarter of 2009 making ever highest growth in a third quarter since 2002.
This recorded 8.0 percent high growth in Q3 2010 has been boosted up by the promising higher growth of its major sub sectors such as “Hotels & restaurants by 32.2 percent”, “ Transport & communication” by 12.4 percent, “Banking, insurance & real estate” by 8.5 percent, and “Wholesale & retail trade” by 7.7 percent.
The export trade sector grew by 1.2 percent at constant prices for the Q3 2010. According to the Balance of Payment Statistics of Central Bank of Sri Lanka (CBSL), export earnings increased to Rs.Mn 233,796 in Q3 of 2010 from Rs. Mn 221,771 in the same quarter of 2009 indicating 5.4 percent increase. 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. Total expenditure for imports increased to Rs. Mn 381,376 in Q3 2010 from Rs. Mn 296,906 in the same quarter of previous year recording 28.5 increase. According to trade indices of CBSL, the import volume and import prices increased by 14.8 percent and by 12.0 percent respectively for the Q3 2010 over the same quarter of previous year.
Domestic trade sector grew by 7.7 percent in the Q3 2010. This was mainly due to higher agricultural and industrial productions which mostly go to the domestic market. Higher production of Paddy, Vegetables, and Fish, which are chiefly consumed locally, are the major driving force of higher growth rate of Domestic trade.
Hotels and restaurant sector recorded 32.2 percent growth against 20.6 percent growth of the same quarter 2009. Tourists arrival increased to 166,576 in the Q3 2010 from 121,413 in the Q3 2009 indicating a 37.2 percent increase. This promising
increase was mainly supported by the prevailing peace across the country and also easing off of the global economic recession to a certain extent. Increased tourist arrivals together with the increment of room occupancy redressed the tourist industry thereby push up tourist earnings by 51.9 percent in the Q3 2010.
Transport & communication sector indicated a 12.4 percent growth in the Q3 of 2010 as against that of 7.0 percent growth in the same quarter of the last year. This growth was supported by “Passenger and goods transportation”, “Cargo handling-Ports and civil aviation”, and “ post & telecommunication” achieving growth of 12.1 percent, 17.0 percent, and 12.8 percent respectively for the Q3 2010.
Total number of new registration of vehicles increased by 88.7 percent in Q3 as against 21.9 percent decline in the same quarter of previous year. Registration of Buses, Three wheelers and goods transport vehicles increased by 273.6 percent, 185.9 percent and 6.7 percent respectively in the Q3 of 2010.The boom of new registration of vehicles has been chiefly fuelled by the reduction of import duty in the month of June 2010.
Passenger kilometers flown and passengers income in Sri Lankan air lines have increased by 20.8 percent and 34.5 percent respectively in the reference quarter due to increased tourist arrivals, addition of a new air bus to the airline and added extra turns of flights.
Passenger kilometers traveled, and daily operated buses of Sri Lanka transport board have increased by 4.7 percent, and by 11.3 percent respectively in the Q3 of this year compared to same quarter of last year due to addition of new busses and repaired busses to the total fleet.
Cargo handling -Ports & civil aviation recorded 17.0 percent growth in Q3 2010 due to satisfactory performance of international trade sector as a result of gradual recovery of the global economy. The amount of total cargo throughput and container handling of port authority have increased by 18.9 percent and 12.9 percent respectively. Cargo carriages of Sri Lankan air lines increased by 12.8 percent in this quarter.
Total telephone density (Telephone connections per 100 persons) increased to 95.8 in Q3 2010 from 82.0 in the same quarter the year before, due to increase of fixed access and mobile subscribers. Entry of new service providers to the telecommunication industry and introduction of new consumer friendly packages with advanced technology caused to improve this sector.
The “Banking, Insurance & Real estate sector” grew by 8.5 percent in the Q3 2010 against the growth of 6.8 percent in the same quarter of 2009. Average interest income of the Licensed Commercial Banks (LCBs) dropped by 10.4 percent as a result of decline in discount on loans and advances. Interest expenses also dropped by 23.3 percent mainly due to decrease in interest payments on deposits and on borrowings. This led to increase in net interest income. A higher level of profit was generated by increasing net interest income and higher non interest income.
A rapid expansion can be seen in Insurance sector as almost all insurance companies made significant profits at 30.0 percent in average.
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