Sept 10, Colombo: Gross Domestic Product (GDP) of Sri Lanka's Western Province, the highest contributor to the national GDP, has declined again in 2012 indicating the reduction in disparity among provinces.
In 2012, Sri Lanka's economy grew by 6.4 percent in 2012 to Rs. 7.582 trillion (US$ 59.4 billion) with a per capita income of Rs. 373,001 (US $ 2,923), according to the figures released by the Statistics Department of Central Bank of Sri Lanka (CBSL) Tuesday.
As expected the Western Province, where most of the economic activities centered, made the highest contribution of Rs. 3.292 trillion to GDP in 2012. However its share in GDP reduced to 43.4 percent from 44.2 percent in 2011. The slight reduction in the contribution, however, points to further reduction in disparity among provinces, the Bank noted.
The Provincial GDP (PGDP) of the Western Province grew at a rate of 13.7 percent benefitting from the continuous growth in the manufacturing, construction, transportation and trade sectors.
In line with improvements in country's economic environment, all the provinces have reported a double digit growth rate in 2012, the Bank said.
Sri Lanka's Northern Province recovering from the three-decade long war has recorded the highest growth last year reflecting the rapid expansion in income generating activities in the Province.
The PGDP of the Northern Province for the 2012 recorded a GDP growth rate of 25.9 percent contributing 4.0% with an income of Rs. 305 billion to the national economy from construction, financial services, transportation, and paddy and fish production sectors. However, the growth has slowed in the Province against the 27.8 percent growth recorded for 2011 although more income was generated.
Benefitting from the increases in agriculture, mining and quarrying, construction and financial services sectors, the Eastern province registered the second highest growth of 25.0 percent in the PGDP with an increase in its GDP share to 6.3 percent in 2012 from 5.8 percent in 2011.
Southern Province contributed to the national growth most next to the Western Province by 11.5 percent with revenues of Rs. 872 billion recording a growth of 21.3 percent for 2012.
The growth rates of the Northern, Eastern and Southern provinces were higher than the country's nominal growth rate of 15.9 in 2012.
The Central Province in 2012 provided the third highest contribution maintaining its relative position and the GDP contribution of 9.8 percent with Rs. 743 billion while growing at15.3 percent.
North Western Province recorded the lowest growth declining sharply from 22.5 percent in 2011 to 11.4 percent in 2012. Its share of GDP declined in 2012 to 9.6 percent from 10.0 percent in 2011 with Rs. 730 billion.
The contributions to GDP from North Central, Uva, and Sabaragamuwa provinces remained unchanged at 4.7, 4.5 and 6.2 percent respectively. All three provinces recorded growth rates above 15 percent.
The Services Sector dominated the sectoral contributions to the national GDP from all the provinces. Overall Services Sector contribution declined marginally in 2012 by 0.5 percent to 57.5 percent from 58.0 percent in 2011.
The contribution of the agriculture sector to GDP declined to 11.1 percent in 2012 from 12.1 in 2011 while the contribution from industry sector increased in 2012 to 31.5 percent from 29.9 percent in 2011.