• 1.5% of positive growth rate in third-quarter

Sri Lanka's GDP growth plunged by 16.3%  in the second-quarter of  2020 amidst COVID-19 lockdowns, the Department of Census and Statistics (DCS) said.

“The second quarter GDP estimates, has shown unprecedented fall in real GDP by 16.3 percent, with compared to the 1.1 percent of growth rate recorded in the second quarter of 2019, and it is the largest drop ever recorded in the Sri Lanka history,” the DCS said.

In this quarter, majority of the economies in the whole world (eg: India, Maldives, Thailand, Singapore, Malaysia etc.,), except very few (eg: China, Vietnam), have recorded severe contraction in their economies.

When consider the second quarter of 2020, during the period of March 19th to 20th of April, the whole country was being locked. Then gradually the districts were being released from the imposed curfew.

However, until 26th of May, the two main districts (Colombo and Gampaha), where the major industrial zones and business places are situated, were under the imposed curfew.

The government imposed this curfew in order to control the spread of covid-19 disease among the community and the government achieved successful results by controlling it.

The four major components of the economy; ‘Agriculture’, ‘Industry’, ‘Services’ and ‘Taxes less subsidies on products’ have contributed their share to the GDP at current prices by 9.7% 24.8%, 61.2% and 4.3% respectively in the second quarter of 2020. Accordingly, the GDP estimates of the second quarter of 2020, have reported contraction in all three major economic activities of Agriculture, Industrial and services by 5.9%, 23.1% and 12.9% respectively.

In addition, in the second quarter of 2020, the ‘Taxes less subsidies on products’ has recorded 30.1%of decrease with compared to the second quarter in the year 2019. This is due to the major fall in tax revenues due to the amendments made in the Tax rates and the thresholds. This has affected to slowdown the overall GDP growth rate of the country.

Meanwhile, issuing a communiqué, on releasing National Accounts Estimates for the third quarter of 2020, the DCS states that the GDP growth rate for the third quarter of 2020 has been estimated as 1.5% of positive growth rate when compared to the 2.4% of positive growth recorded in the third quarter of 2019.

The four major components of the economy; ‘Agriculture’, ‘Industry’, ‘Services’ and ‘Taxes less subsidies on products’ have contributed their share to the GDP at current prices by 8.2%, 27.7 %, 56.8 % and 7.4% respectively in the third quarter of 2020.

Accordingly, for the first time in the year 2020, all three major economic activities of Agriculture, Industry & Services, have reported positive growth rates in the third quarter of 2020, showing recovery in the major economic activities after the COVID - 19 pandemic.

The Agriculture sector, has reported a substantial growth in the value addition of the agricultural production by 4.3% during the third quarter in the 2020. Following that the industrial sector, has also reported 0.6% of growth during this quarter. Out of that, the manufacturing industry, has shown a significant growth by 5.3 percent during this quarter, when compared to the third quarter in year 2019. Moreover, the Services sector too recorded 2.1% of positive growth rate during this quarter.