RSS Feed (xml)
of 2009 , dragged down by weak demand for clothing and tea, official
data showed Monday. The figure contrasted with 6.6 percent
expansion in the first half of 2008 , but analysts expect an economic
revival after government forces crushed the Tamil Tiger rebels in May
following nearly four decades of conflict. "The impact of the global
downturn reduced demand for our exports and resulted in this
reversal," deputy director of the Department of Census and
Statistics, Nalini Kumarasinghe, told reporters. The war-battered
economy slowed to 2.1 percent in the second quarter, from 7.0
percent in the same period a year earlier, as the services sector
including banks, shipping and telecom were slow to recover. The
sector slowed to 1.1 percent in the second quarter compared to 6.5
percent at the same point last year. Agriculture grew 4.4 percent,
from 7.4 percent the previous year, while industrial output
expanded 3.0 percent, against 6.9 percent a year earlier. Sri
Lanka's central bank has raised year-end economic targets to between
four and five percent, from 2.5 percent to 3.0 percent, after the
Tigers were defeated. "We expect full year 2009 forecast to be around
4.5 percent, driven by economic activity in construction, trade and
tourism," said Yohan Seimon, an analyst at John Keells Stockbrokers.
