Highest GDP contribution from Western Province
• Western Province provides highest GDP contribution in 2015
• The per capita income of the Western province was 1.4 times the national per capita income in 2015.
• However, per capita income ratio in the Western province declined marginally over the period of 2014 to 2015.
Provincial Gross Domestic Product (PGDP) for 2015 has been computed by the Statistics Department of the Central Bank of Sri Lanka (CBSL), based on the disaggregation of the rebased series of National Accounts estimates (2010 constant prices) by the Department of Census and Statistics (DCS)
1) In the estimation of PGDP, the value of each line item in GDP (base year 2010) is apportioned using relevant indicators at provincial level.
2) The Sri Lankan economy reached an annual real GDP growth of 4.8 per cent in 2015, while the nominal GDP recorded a growth of 7.0 per cent to Rs. 11,183 billion. The disaggregation of nominal GDP across provinces is given in Table 1.
3) As in previous years, Western province provided the highest contribution to GDP in 2015. However, in line with recent trends, its share in the GDP declined to 41.2 per cent in 2015 from 41.7 per cent in 2014, contributing gradually to reduce regional disparities.
The North Western province which recorded the 2nd highest contribution to GDP in 2014, maintained its position in 2015 while its share also declined to 10.9% in 2015 from 11.1% in 2014 .
The 3rd highest contribution recorded from the Southern province at 10.4% in 2015 while the Central province contribution remained unchanged at 10.3%.
The contribution of the Sabaragamuwa province increased to 7.0% in 2015 from 6.8% in 2014 .
The Eastern, North Central and Northern provinces increased their GDP contributions while Uva province contribution marginally decreased in 2015.
Provincial GDP growth rates:
4) In line with improvements in country’s economic environment, all provinces recorded nominal growth rates ranging from 5.4% to 12.1% in 2015.
The North Central and Northern provinces recorded the highest growth rate of 12.1%, in nominal terms in 2015.
Further, in 2015, Eastern province recorded a double digit growth rate of 10.9%, while those of Sabaragamuwa and Central provinces were higher than the country’s nominal growth rate of 7.0%.
The Western province recorded a nominal growth rate equivalent to 5.8% and a growth rate of 5.4% was observed in the Uva province in 2015.
Sectoral contributions to the PGDP:
Considerable variations in the structure of the PGDP can be observed across provinces in 2015.
The Agriculture sector accounted for 1.7% of the GDP in the Western province in 2015, whereas it accounted in the range of 9.0% to 16.3% of the GDP in other provinces.
The contribution of the Agriculture sector to the PGDP increased in Northern, North Western, North Central and Uva provinces in 2015, while the same decreased in all the other provinces.
The highest Industry sector contribution to PGDP was observed in the Western province while the lowest was recorded from the Northern Province in 2015.
The Northern, Eastern, North Western and Uva provinces’ contribution to Industry sector decreased, while that of all other provinces increased in 2015.
The Services sector was the most dominant sector in 2015 accounting in the range of 49.0% and 60.6% of the PGDP across the provinces.
The contribution from the Services sector increased in the Southern, Eastern, North Western and Uva while that of all other provinces decreased in 2015.
Per Capita Income:
The per capita income of the Western province was 1.4 times the national per capita income in 2015. However, per capita income ratio in the Western province declined marginally over the period of 2014 to 2015.
In Northern and North Central provinces, the per capita income ratio increased while in other provinces, the per capita income ratio remained unchanged except in the Uva province.
The regional performance of Sri Lanka is beginning to change with tourism and other sectors creating more job opportunities.
However, the country needs a lot of FDI’s to change its growth momentum to government desired levels, and OSL is inviting overseas investors to register their investment interest to bid for the massive projects planned to revive these regions on the PPP model.
More detailed sector investment information is available with the biz-friendly OSL Team and you could ask for a free consultation now.
|Article Code :||VBS/AT/10082016/Z-1|