The economy of Sri Lanka grew by 1.6 percent year-on-year in the second quarter of 2019, easing from a 3.7 percent expansion in the previous three-month period. That was the weakest growth rate since the first quarter of 2014 due to a slowdown in overall activity following the Easter Sunday attacks. Wholesale and retail trade, transportation and storage, accommodation and food service activities, which account for nearly 25 percent of total GDP, shrank 0.6 percent, after a 3.3 percent advance in Q1. In addition, output rose at a softer pace for: manufacturing, mining and quarrying and other industry (1 percent vs 1.8 percent); financial and insurance activities (8 percent vs 9.6 percent); public administration, defense, education, human health and social work activities (0.6 percent vs 2.1 percent); other services (1.5 percent vs 4.6 percent); and agriculture, forestry & fishing (1 percent vs 5.5 percent). GDP Annual Growth Rate in Sri Lanka averaged 5.65 percent from 2003 until 2019, reaching an all time high of 16.12 percent in the first quarter of 2012 and a record low of 0.50 percent in the fourth quarter of 2013.
GDP Annual Growth Rate in Sri Lanka is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Sri Lanka to stand at 3.10 in 12 months time. In the long-term, the Sri Lanka GDP Annual Growth Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.