Second quarter economic growth surges to 12.3% amid low base effect

„DCS says all three major economic activities recorded significant positive growth „SL recorded its worst contraction of 16.4% in 2Q20 due to the first lockdown wave

Sri Lanka’s economy grew at a robust 12.3 percent in the second quarter of 2021 since late April as a result of an extremely low base in the corresponding period of the previous year, despite the COVID-19 virus-induced restrictions on economic activities.

Sri Lanka’s economy recorded its worst contraction of 16.4 percent in the second quarter of last year due to the first lockdown wave, which resulted in the complete closing of the economy barring a few essential services.

The Department of Census and Statistics (DCS) said during the second quarter of 2021, all three major economic activities recorded significant positive growth rates as a result of the low base effect stemming from last year.

Accordingly, agriculture activities recorded a positive growth of 8.1 percent, industrial 22.1 percent and activities 7.5 percent.

Services contributed to 57.9 percent of GDP, while agriculture and industry contributed to 9.2 percent and 27 percent respectively.

Sri Lanka’s GSP at constant prices in the second quarter stood at Rs.2.2 trillion rupees (US$ 10.8 billion).

The DCS data showed that this figure is lower than the GDP for the same period in 2018 and 2019, indicating that output had not yet reached pre-pandemic levels.