Sri Lanka Central Banks projections now indicate that Sri Lankas GDP is likely to enter a growing of 7.2 per cent in 2012, from the earlier projection of 8 per cent. At the same clip, the recent policy steps are expected to take to a moderateness of aggregative demand which will hold a dampening consequence on monetary values, thereby countervailing to some extent, and the supply side force per unit areas on monetary values as a consequence of the recent upward accommodations to administered monetary values.
Sri Lanka ‘s Central Bank has decided to keep the current policy involvement rates and the Statutory Reserve Ratio ( SRR ) .A
In the Monetary Policy Review released that Central Bank of Sri Lanka said its Repurchase rate and the Reverse Repurchase rate would stay at 7.50 per centum and 9.00 per centum severally. The SRR applicable to all rupee sedimentation liabilities of commercial Bankss will be at 8.00 per centum. Sri Lanka ‘s economic system recorded a high growing rate of above 8 per centum for the 2nd back-to-back twelvemonth in 2011 but for 2012, the Central Bank forecast a lower growing rate.
The Bank lowered the projection for 2012 to 7.2 per centum from an earlier projection of 8 percent growing rate observing that the policy steps implemented by both the authorities and the Central Bank last month will impact the rapid gait of growing in economic system, peculiarly due to the end point higher energy costs, diminution in recognition flows, and lower import related activity.
A The imports increased well during the last twelvemonth due to the enlargement in domestic investment.A However, the continued favourable public presentation of domestic supply has eased the inauspicious impact of lifting trade good monetary values in international markets assisting the rising prices to stay at individual figure degrees over a three twelvemonth period.
The Central Bank expressed hope that the new steps will promote the industries every bit good as general populace to happen new avenues to conserve energy and cut down the outgo on fuel imports to some extent.
FAVORABLE & A ; UNFAVORABLE FACTORS
In Sri Lanka Agriculture chiefly depends on rice production. So for that they improved agribusiness engineering.
For the Improvement Sri Lanka Govt. Introduce Department of Agriculture Sri Lanka ( DOASL ) .
The sections Functions are research, extension, seed and seting stuff production, regulative services, works quarantine, dirt preservation, enrollment of pesticides.
There are few Agriculture Parks abbreviated as A. Parks established by the section. So that they will do betterment in production.
From the get downing Sri Lanka has been a donee of being an active spouse in planetary trade. So they are able to do international trade and from that able to wealth creative activity.
Failings in scheme and policy for the betterment of agribusiness sector.
Heavy populace sector regulative intercessions in trade good and input/factor markets.
Weak bringing of services in rural countries.
Destructive impact of civil struggle and tsunami.
Sri Lanka progressively becomes a service oriented economic system that ‘s why they sharply develop them by puting immense sum of investing.
Due to see country, Tourism services are really good in Sri Lanka.
From the past few old ages the step part about 60 % of GDP is covered by service sector merely.
The Commonwealth Secretariat is supplying proficient aid to the Government of Sri Lanka to assist the state construct up its capacity in the services sector.
They have besides identified the possible competitory export capableness in Sri Lanka for service sector.
Sri Lanka ‘s IT industry has made rapid advancement in the past decennary, going a vibrant sector in the state and the part.
Every factor which relates the service sector, all are positive or we can state all are favorable for the state.
Industry ( Manufacturing ) Sector
The authorities ‘s industrial policy includes encouraging investing in industries in which it believes Sri Lanka has a comparative advantage.
The Board of Investment ( BOI ) offers assorted inducements for investing in five industry sections that are electronics and constituents for electronic collection, industrial and machine tools ( a new accent ) , ceramics and glasswork, rubber-based industries, and visible radiation and heavy technology.
This will increase the efficiency degree of industrial sector in Sri Lanka.
Another key policy component or we can state favourable component is deregulating, in 2001 a committed on deregulating was formed to analyze regulative hindrances to Sri Lanka ‘s industrial development.
A more positive development was the Restoration of a dependable power supply in May 2002 with the terminal of drought conditions.
Government of Sri Lanka make import liberalisation policy ; because of that policy the little graduated table industries are affected.
It increases unsated degree of little sectors industries.
Liberalizations policy has removed the regulative barriers. So that in Sri Lanka the big graduated table industry have non much barriers but for little industries are affected.
STRONGEST AND WEAKEST SEGMENTS
The industry sector plays an of import function for srilanka. In 2007, this sector has contributed Rs. 635,199 Million, stand foring 28.5 % of the entire production ( GDP ) , while agribusiness sector and service sector contributed 11.9 % and 59.6 % severally to the entire production of the state.
Harmonizing to the information of 2011 the estimated gross domestic merchandise of Srilanka would be about $ 115.1 billion. Out of the entire production agribusiness sector comprises about 13 % of the GDP while service sector contributed 57.4 % of the entire GDP of the state and industry sector contributed 29.6 % of the entire gross domestic merchandise of the country.A As far as agribusiness sector is concerned merchandises such as rice, sugar cane, grains, pulsations, oil-rich seed, spices, veggies, fruit, tea, gum elastic, coconuts, milk, eggs, fish etc. are included while industry sector constitute of processing of gum elastic, tea, coconuts, baccy and other agricultural trade goods, telecommunications, insurance, banking, touristry, transportation, vesture, fabrics, cement, crude oil refinement, information engineering services, building etc.
Sing the information we can state that the service sector plays an of import function in the Srilankan economic system so it can be considered as the strongest section of the economic system while agribusiness sector is the least conducive sector in the entire gross domestic merchandise of srilanka because of the constantly cut downing portion of its part.
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Contrast AND COMPARISION
From the above given information it can be analyzed that the strongest section of srilanka is SERVICE SECTOR. This sector contributes about 60 % of GDP in past few old ages. They have identified assorted competitory potency capablenesss to beef up the economy.The weakest section of srilanka is AGRICULTURE SECTOR. In past three old ages this sector has contributed merely 12 % in the GDP of srilanka. There are so many ordinances which are the chief barriers for this sector. There is no proper scheme preparation and executing for the betterment of this sector. Due to weak bringing services and possible tsunami devastations this sector becomes the weakest section.