The Western Province emerged as the leading contributor to Sri Lanka’s economy in 2023, accounting for 43.7% of the total Gross Domestic Product (GDP) at current market prices. This dominance underscores its role as the country’s economic powerhouse, particularly in the industrial and services sectors. The Northwestern and Central Provinces followed, securing the second and third positions in provincial GDP contributions, respectively.
Sri Lanka’s economy demonstrated resilience with a growth rate of 5.5% in the third quarter of 2023, up from 4.7% in the second quarter. The performance of the three main economic sectors showed encouraging trends: agriculture grew by 3.0%, industry surged by 10.8%, and services increased by 2.6%. This recovery is notable as it marks a slower economic contraction of 2.3% for 2023 compared to the sharp 7.3% contraction experienced in 2022 during the height of Sri Lanka’s economic crisis.
The Western Province’s substantial contribution reflects its strategic importance, particularly in industrial and service activities. It accounted for 48.7% of the industrial sector output, driven by advanced infrastructure and proximity to the country’s key port. The province also led the services sector, contributing 45.9% through its dominance in finance and other essential economic activities.
The Northwestern Province emerged as the top contributor to the agricultural sector, with a share of 19.6%, followed by the Southern Province at 13.5% and the Central Province at 12.4%. This highlights the regional strengths in agriculture, which remains a crucial part of the national economy.
The Central Province stood out in the services sector, contributing 10.4%, while the Southern Province accounted for 9.9%. Meanwhile, in industrial activities, the Northwestern and Central Provinces followed the Western Province with shares of 12.3% and 9.3%, respectively.
Despite the challenges faced in 2022, including shortages of food, fuel, medicine, and essential goods due to foreign exchange constraints, Sri Lanka has made significant strides toward stabilizing its economy. The provincial data released highlights the crucial roles played by different regions in the nation’s recovery and underscores the need for continued investment in infrastructure, agriculture, and services to sustain this momentum.
As Sri Lanka progresses, the regional economic diversity highlighted by these contributions will play a pivotal role in shaping a balanced and inclusive economic growth trajectory for the country.
