Sri Lanka’s economy contracts in second quarter of 2022

Sri Lanka’s Department of Census and Statistics (DCS) states that the year-on-year GDP growth rate for the second quarter of 2022 has been estimated as 8.4 percent of negative growth rate, against the value reported in the same quarter in the year 2021.

The DCS has released the estimated Gross Domestic Product (GDP) at current price and at constant (2015) price in the Production approach and the other macroeconomic indicators for the second quarter (April 01 – June 30) of 2022.

According to the report, the Gross Domestic Product for Sri Lanka for the second quarter of year 2022 at current price reported as Rs. 5,374,716 million.

The Gross Domestic Product for Sri Lanka for the second quarter of year 2022 at constant price (2015) reported as Rs. 2,782,114 million.

In the second quarter of year 2022, the percentage change of current price GDP reported as 33.3 percent and the year on year GDP growth rate reported as negative 8.4 percent.

The overall Agriculture, Industry and Services activities declined by 8.4 percent, 10.0 percent and 2.2 percent respectively, in the second quarter of 2022.

Issuing a communique, on releasing National Accounts Estimates, the DCS states that the year-on-year GDP growth rate for the second quarter of 2022 has been estimated as 8.4 percent of negative growth rate, against the value reported in the same quarter in the year 2021.

Further, the Gross Domestic Product for Sri Lanka for the second quarter of year 2022 at constant price (2015) has declined up to Rs. 2,782,114 million from Rs. 3,038,855 million which was recorded in the second quarter of year 2021.

However, the GDP at constant price (2015) reported in the second quarter of 2022 is higher than the GDP at constant price reported in the second quarter of year 2020 which amounted to Rs. 2,612,069 million.

In the second quarter of year 2022, the year on year GDP growth rate is calculated based on the real GDP value reported in the second quarter of previous year.

Accordingly, the following Figure reflects the changes in the real GDP levels in the second quarter GDP series from the year 2018 to the year of 2022.