In the latest quarter, the industrial sector expanded 10.8 percent from a year ago, compared with 8.8 percent in the same period of 2010.

The construction sector recorded 17.3 percent annual growth, its highest quarterly rate since data collection on the activity began in 2002.

Manufacturing also showed a robust 7.7 percent growth, higher than 6.5 percent expansion in the last year's third quarter, led by a solid 10.2 percent growth in textile sector.

The tourism sector jumped 27.2 percent year-on-year, sustaining its growth of more than 20 percent growth since the end of the war in May 2009.

The Indian Ocean island nation, enjoying a third year of peace after its army defeated the LTTE, has a target for 2011 of 8.3 percent economic growth.

"We are on track to achieve this year's growth target," Central Bank Governor Ajith Nivard Cabraal told Reuters. He said he is also "fairly optimistic" about the fourth quarter.

The service and agricultural sectors expanded 7.8 percent and 6.2 percent respectively.

A Reuters poll of 10 analysts had predicted 8 percent annual growth in the third quarter.

The Central Bank has maintained monetary policy rates at more than six-year lows since January, and private sector credit growth has been at a 16-year high.

Meanwhile Bloomberg also states that the country’s growth has rebounded after the end of a 26- year war in May 2009 boosted infrastructure development, foreign investment and tourism.

Foreign direct investments have likely exceeded the 2011 target of $1 billion, the Bloomberg further said.