Download Provincial Gross Domestic Product – 2007

Communications Department
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Press Release
Issued By
Date
Statistics Department
2008 – 07 -10
Provincial Gross Domestic Product – 2007
The Central Bank of Sri Lanka (CBSL) has compiled Gross Domestic Product at provincial level
(PGDP) for 2007. This is based on the disagrigation of the Gross Domestic Product (GDP)
compiled by the Department of Census and Statistics (DCS ), since the Central Bank of Sri Lanka
had decided to use the National income statistics compiled by the DCS from 2007. The PGDP
statistics are estimated at current market prices. Accordingly, the national GDP, measured as the
aggregate of the provincial GDP, has grown by 21.7 per cent in 2007, reaching Rs.3,577 billion
with a per capita income of Rs.178,783.
The salient feature observed in the PGDP estimates for 2007 was the changing trend of the
provincial contribution to the national GDP towards reduction of regional disparities. During the
year, the contribution to the national GDP by the Western Province dropped further from 50.1 per
cent in 2006 to 48.4 per cent in 2007, while contribution from all other provinces except
North
Central province increased over the previous year. Southern province and North Western provinces
contributed 10.5 per cent and 9.6 per cent to the GDP in 2007 compared to 10 per cent and 9.1 per
cent in 2006. Meanwhile, the Central province, Sabaragamuwa province, Uva province, Eastern
province and Northern Province also recorded some improvements eventhough the contribution of
each of these five provinces to total GDP still remained at less than 10 per cent.
In terms of GDP growth rates, the Western Province and the North Central province recorded 17.7
per cent and 19.1 per cent, slightly below the country’s average growth of 21.7 per cent. In contrast,
every other province achieved a growth rate well above the national average rate.
Accordingly,
North Western province, Uva province, Southern province, Northern Province, Sabaragamuwa
province, Eastern province and Central province recorded growth rates of 28.3 per cent, 28.2 per
cent, 27.9 per cent, 27.1 per cent, 26.7 percent 23.9 per cent and 22.8 per cent, respectively.
In terms of per capita GDP, the Western Province received 1.7 times the national average while all
other provinces continued to fell below the country average, ranging from 0.5 to 0.9 times.
However, the Southern, Sabaragamuwa and Eastern provinces showed marginal improvements in
per capita income ratio over 2006.
The four neighboring provinces of the Western province, viz., North Western, Southern,
Sabaragamuwa and Central provinces jointly grew by 26.5 percent, more than the growth of
Western province, adding a share of 35 per cent to the national GDP compared with a share of 34
per cent in 2006. This region was responsible for 59 per cent of the total agriculture value added
and approximately 1/3 of total Industry and Services value added of the national economy. The
growth in the region was largely driven by the expansion of the Services sector contributing around
52 per cent to the total growth in the region, while the industry sector and agriculture sector
contributed for 29 per cent and 19 per cent, respectively.
The most outer four provinces from the Western province namely, North Central, Uva, Eastern and
Northern provinces, contributed less than 5 per cent each to the national economy. These four
provinces collectively recorded a growth of 24.4 per cent, of which 65 per cent came from the
expansion of the services sector followed by Industry and Agriculture sectors contributing 20 per
cent and 16 per cent, respectively.
Data revealed that there has been an overall improvement in terms of provincial contribution to the
national GDP towards reducing regional disparity. However, the Western Province continued to
dominate as the main income earner and key spending province of the country resulting from the
concentration of its huge resource base such as infrastructure facilities, banking and finance,
industries, business centers, airports and the main sea port. Therefore, the recent trend reflects that
there is more room for further development in other provinces by making a concerted effort by
provincial authorities as well as the central government.
Table 1
Provincial GDP at Current Factor Cost Prices – 2006 and 20071
1 Provisional
Lanka
Source: Central Bank of Sri
Per Capita Income by Provinces Rs.
350,000
2006
2007
300,000
250,000
200,000
Rs.
150,000
100,000
50,000
0
Island
Northern
Eastern
Uva
North Central
North Western
Sabarabamuw a
Central
Southern
Western
Gross Domestic Product Share by Provinces (%)
55.0
45.0
2006
2007
35.0
%
25.0
15.0
5.0
-5.0
Northern
Eastern
Uva
North Central
North Western
Sabarabamuw a
Central
Southern
Western