Western Province major contributor to Sri Lanka’s economic growth in 2016

Western Province major contributor to Sri Lanka’s economic growth in 2016

 

As in previous years, Gross Domestic Product (GDP) of Sri Lanka’s Western Province continues to be the highest contributor to the national GDP, its share declining marginally to 39.7 percent in 2016 from 39.9 percent in 2015.

Statistics Department of Central Bank has computed the Provincial Gross Domestic Product (PGDP) for 2015 based on the disaggregation of the nominal Gross Domestic Product (GDP) compiled by the Department of Census and Statistics (DCS).

In nominal terms the national GDP for 2016 was Rs. 11.839 trillion recording a growth of 8.11 percent and a per capita income of Rs. 558,363 (US$ 3,835).

Continuing the trend observed in recent years, the GDP share of the Western Province declined in 2016 contributing to reduce disparities among provinces. However, the Western province remained the front runner in the economy providing the highest contribution of 39.7 percent to GDP.

Western Province contributed Rs. 4.697 trillion to the national GDP. While the second and third largest contributions of Rs. 1.262 trillion (10.7%) and Rs. 1.248 trillion (10.5%) were recorded from North Western and Central provinces.

Contributions from the Uva and the Northern provinces increased marginally to 5.8 percent and 4.2 percent in 2016 compared to 5.6 percent and 4.1 percent in 2015, respectively.

Except for the North Central province, the contributions to GDP from the other three provinces, namely Southern, Sabaragamuwa and Eastern, remained unchanged at 10.1 percent, 7.5 percent and 5.7 percent respectively, in 2016.

The share of the North Central province to overall GDP was 5.8 percent in 2016 from 5.9 percent in 2015 mainly due to subdued performance in agriculture activities

All provinces recorded positive nominal growth rates in 2016, with the Uva province recording the highest growth rate of 12.4 percent in nominal terms.

The agriculture sector accounted for 2.1 percent of the GDP in the Western province in 2016, whereas its contribution to provincial GDP ranged from 7.6 to 13.5 percent in the other provinces.

Except for the Central, the North Western and the Western provinces, contribution from industry activities to PGDP increased in all other provinces. In 2016, the largest contribution to PGDP from industry activities was recorded from the Western province while the lowest share was reported from the Southern province.

The Services activities play a major role in all provinces with contributions between 51.1 percent and 61.6 percent of the PGDP in 2016. However, when compared to 2015, the contribution from the Services activities increased in the North Central, the North Western and the Western provinces, but declined in all other provinces during 2016.

The per capita income increased in all provinces while only that of the Western province exceeded the national value in both 2015 and 2016.