Annual Report 2008 - Ministry of Finance and Planning

6. A Sectoral Perspective
237
Table 6.2
Services Valued at 2002 Prices*
(Rs. bn.)
Sector 2005 2006 2007 2008
Trade 480 515 546 572
Import 184 197 203 213
Export 92 96 104 105
Domestic 204 222 239 254
Hotels and Restaurants 9 9 9 9
Transport and Telecommunications 231 260 287 310
Transport 199 221 242 257
Port and Aviation 11 14 15 16
Post and Telecommunication 21 25 30 37
Banking, Insurance and Real Estate etc 164 178 193 206
Ownership of Dwellings 71 72 72 73
Government Services 154 162 171 181
Private Services 45 49 53 56
Total Production Value 1,154 1,243 1,332 1,407
Source: Department of Census and Statistics
* Valued at 2002 Constant Prices for GDP Computation
Industries
The industry sector, which accounted for almost a third
(29.4 percent)of total GDP, grew by 5.9 percent in 2008
compared to 7.6 percent in 2007. This slow pace was mainly
due to the world economic slowdown accelerating in the
latter part of 2008. The tea, rubber and coconut processing
sector represented a high growth rate in 2008. The upward
trend of the construction sub-sector somewhat contracted
in 2008 recording a moderate growth rate of 7.8 percent
in comparison to a growth of 9 percent in the preceeding
three year period of 2005-2007. Textile and apparel sector
decelerated to 3.1 percent in 2008 over the previous year
growth rate of 7.3 percent owing to the slowdown in
external demand. The manufacturing sectors such as food
and beverages, chemical, petroleum, coal, rubber, plastic
and ceramics industry witnessed a slower pace in 2008 with
a declined external demand, high cost of production and
collapsed automobile industry.
Industrial exports
Industrial exports contributed to 76 percent of total exports
and recorded a moderate growth of 3.2 percent in 2008. The
industrial exports amounted to US$ 6,159 million in the year.
This slowdown is due to the sluggish demand for textile and
Chart 6.4
apparel, comparatively high cost of production, and sharp
depreciation of currencies against US dollar in major export
destinations created by the global financial and economic
crisis. The textile and apparel exports recorded a slow
growth of 3.9 percent amounting US$ 3,459 million in 2008
as against 8.5 percent achieved in 2007. The decelerated
demand for apparel from the major buyers such as USA
followed by UK, Italy and Germany adversely affected to the
growth of the sector. However, Sri Lankan apparel industry
somewhat benefited due to the continuation of the GSP+
scheme.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008