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Tuesday, April 12, 2011 - 5.15 GMT |
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SL economy
recorded an impressive growth in 2010 - CB |
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Sri Lanka's economy grew by an impressive 8.0 per cent in 2010, reflecting a fast recovery from the setback suffered in 2009 and moved to a high and sustainable growth path, the 2010 Central Bank Annual Report said.
In 2010, the first full year of operation subsequent to the ending of the three-decade long conflict, the economy of Sri Lanka has displayed its true potential, with impressive macroeconomic achievements.
All key sectors of the economy demonstrated a commendable performance in 2010, underpinned by the peaceful domestic environment, improved investor confidence, favourable macroeconomic conditions and gradual recovery of the global economy from one of the deepest recessions in history, the report added.
The improved performance in all key sectors of the economy contributed towards the high economic growth in 2010.
The Agriculture sector, which contributed around 11.9 per cent of the GDP in 2010, grew by 7.0 per cent, compared to 3.2 per cent in 2009, mainly driven by the increased production of paddy, tea, rubber and minor export crops along with significant improvements in the fisheries sector output, said by the Central Bank's annual report for the year 2010.
Export agricultural crops such as cloves, pepper and cinnamon contributed positively to the improved performance in the Agriculture sector. Within domestic agriculture, paddy production recorded an impressive growth in 2010 due to increased extent of cultivation particularly in the Northern and Eastern provinces, favourable weather conditions and the continuation of agriculture support schemes. Coconut production declined significantly by 19 per cent in 2010, and sugar production also recorded a marginal decline.
The significant expansion in fishery activities in the Northern and Eastern provinces largely contributed to the increase in fish production by 12 per cent in 2010, while domestic milk production increased notably with the committed efforts to enhance domestic milk production.
The Industry sector grew by 8.4 per cent supported by increased domestic and external demand with enhanced investor and consumer confidence.
The Services sector grew by 8.0 per cent in 2010. The wholesale and retail sub sector, which accounts for the largest share in the Services sector, grew by 7.5 per cent with increased external trade with the gradual recovery of the global economy and domestic trade with the restoration of peace. The hotels and restaurants sub sector grew sharply by about 39.8 per cent underpinned by the strong performance in tourism.
The challenge for policymakers today is to sustain these achievements with macroeconomic stability in the face of more frequent internal and external shocks, the Bank stated.
The 2010 Central Bank Annual Report is found at:
http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/AR2010/English/content.htm
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