Oct 29, Colombo: Gross Domestic Product (GDP) of Sri Lanka's Western Province continues to be the highest contributor to the national GDP, although the disparity among provinces is declining.
Statistics Department of Central Bank has computed the Provincial Gross Domestic Product (PGDP) for 2014 based on the disaggregation of the rebased (2010 constant prices) series of National Accounts estimates by the Department of Census and Statistics (DCS).
The Sri Lankan economy reached an annual real GDP growth of 4.5 percent in 2014, while the nominal GDP recorded a growth of 7.3 percent to Rs.10.292 trillion, according to the Central Bank.
According to the Central Bank calculations, the Western Province, as in previous years, continued to be the frontrunner contributing 42.0 percent to the GDP with Rs. 4.32 trillion in 2014.
However, the continuing trend of declining regional disparity has been observed in 2014 as well, as the income from Western Province moderated further in 2014 according to the figures.
The Southern province accounted for the second highest contribution of 10.8 percent in 2014 with Rs. 1.112 trillion, compared to 10.4 percent in 2013.
The third highest contribution of 10.7 percent was recorded in North Western Province in 2014 with Rs. 1.1 trillion. The Central Province was the fourth highest income earner with Rs. 1.073 trillion and contributing 10.4 percent to national GDP.
The contributions of the Sabaragamuwa and Eastern provinces decreased by 0.1 percent each to 6.7 percent and 5.8 percent, respectively, in 2014. Sabaragamuwa Province PGDP was Rs. 689 billion in 2014 and Eastern Province contributed Rs. 597 billion to national GDP.
Compared to 2013, North Central provincial GDP contribution increased to 5.1 percent in 2014 to Rs. 523 billion from 5.0 percent in 2013. Likewise, Uva Province contribution also increased from 4.9 percent in 2013 to 5.0 percent in 2014 contributing Rs. 511 billion.
The Northern Province contributed the least to GDP with Rs. 367 billion in 2014. The contribution in 2014 marginally increased to 3.6 percent from 3.5 percent in 2013.
Reflecting the overall developments taking place in the country’s economic environment, all provinces recorded healthy nominal growth rates in their PGDP in 2014, ranging in between 5.9 percent to 11.1 percent, the Bank said.
The Southern Province recorded the highest growth rate of 11.1 percent followed by North
Western Province which recorded a 9.3 percent of nominal growth rate in 2014. The North Central, Uva and Northern provinces grew by 8.7, 8.5 and 8.3 percent, respectively. The Western province recorded a nominal growth rate of 5.9 percent in 2014.
In sectoral growth, the services sector was the most dominant sector accounting for between 55.2 percent and 67.0 percent of the PGDP in different provinces in 2014.
The Agriculture sector accounted for 2.1 percent of the GDP in the Western province in 2014, whereas it accounted in the range of 11.3 to 17.2 percent of the GDP in the other provinces.
In 2014, the largest contribution to PGDP from industry sector was observed in the Western Province and the lowest from the Northern Province.