Sri Lanka 3Q06 GDP 7.5%, says Central Bank while cutting full-year growth to 7%

December 29, 2006 (LBO) – Sri Lanka's economy grew 7.5 percent in the third quarter ended Sept. 30, the central bank said Friday, while lowering full-year growth forecast to 7.0 percent. "With only minor interruptions in most parts of the country, growth is projected at 7 percent. Financial markets have remained calm, though investor confidence has been somewhat weakened by increased uncertainties," the Fund said.

Growth during the third quarter of this year, was faster than the 6.9 percent expansion in the same quarter of 2005.

"This expansion was broad-based, with higher growth in telecommunication, cargo handling, financial services, trade and from the higher usage of hydropower due to extreme weather," the central bank said.

Growth in the third quarter was led by the services sector, which grew at a high of 8.5 percent, while the agriculture and industry sectors grew by 4.5 percent and 7.4 percent, respectively, over the same period last year.

"The services sector continued to dominate, contributing 63 percent to the growth, while the industry and agriculture sectors contributed 27 percent and 10 percent, respectively," the bank said in a statement.

The third