Dec 19, Colombo: Sri Lanka today said that its annual economic growth slowed to 7.0 percent in the third quarter, due to war situation in the north and east.

Census and Statistics Department Director General Suranjana Vidyaratne said that “We expect full-year economic expansion to slow down to 6.7 percent this year from 7.7 percent in 2006.”

Ms. Vidyaratne also said that the fall in growth is due to lower tourism revenues, poor rainfall that has hit agricultural output and a drop in consumer spending. The growth is expected to increase to 7.5 percent in 2008.