The Sri Lanka economy grew by 3.7% YoY in the second quarter of 2018, up from an upwardly revised 3.5% gain in the preceding period. It was the highest growth rate since Q4 2016, as the output expanded faster for industrial activities (2.3% from 1% in Q1), mostly for manufacturing (+3.2%) – due to higher production of food, beverages & tobacco; textiles & wearing apparels and coke & refined oil products -; construction (+1.4%) and electricity, gas, steam & air supply (+2.3%). Additionally, services sector output advanced 4.8%, compared to 4.4% in Q1 2018, mainly as a result of a solid performance of wholesale & retail trade (+4.9%); accommodation, food & beverage services (+6.4%); telecommunication services (+14.4%); information technology services (+9%) and financial services (+12%). On the other hand, output went up at a softer pace for agriculture (4.5% from 4.8%), as production slowed for tea (7.1%) and rubber (11.9%) and fell for marine fishing (-0.5%). GDP Annual Growth Rate in Sri Lanka averaged 5.82 percent from 2003 until 2018, 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 3.90 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 5.40 in 12 months time. In the long-term, the Sri Lanka GDP Annual Growth Rate is projected to trend around 5.20 percent in 2020, according to our econometric models.