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'New normalization' boosts 1Q GDP growth to 4.3%

12 Jul 2021

  • Data release delayed by almost a month

Reversing the contraction recorded in the first quarter of last year even when Covid-19 impacted only the last two weeks of that particular quarter, this year’s first quarter has recorded a GDP growth of 4.3% according to the Department of Census and Statistics.  The Department stated that even though the second wave had an impact in the first quarter’s growth, the new normalisation of lifestyles has been credited for supporting economic activities for businesses to carry out their operations.  The GDP growth for the first quarter of last year contracted by 1.8% which according to the Department is due to the risk carried with the spread of global pandemic for the first time in Sri Lanka in early March 2020.  While this year’s GDP data release for the first quarter was delayed by almost a month, the previous year’s (2020) Q1 GDP data was also delayed significantly by the DCS. There, the DCS cited pandemic as the main reason behind the delay. In 2020, it was delayed by a duration of nearly two months, where it was released in August a few hours prior to the general election, with a negative 1.6% growth rate.  Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva condemned the delay of this data release by the DCS on his official Twitter handle recently, questioning whether the DCS is holding the release of the Q1 2021 GDP growth rate until the arrival of Basil Rajapaksa. He also expressed that such delay is “most unprofessional” and said the delay of aforementioned data release makes matters worse.  However, coincidentally, the GDP data was released a day after Basil Rajapaksa’s appointment as the Minister of Finance.


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