ABSTRACT
Population Population 20.0 mn Urban population 20.5% Population under 15 28% Population 65 and over 2.45% Average annual growth rate 1.1% Geography Land area 65,610 km2 Agricultural area 36% Capital city Colombo Population of capital city 2.2 mn Economy Monetary unit Sri Lanka Rupee (SLR) Exchange rate (average fourth quarter 2008) the pound sterling SLR 172.70 the US dollar SLR 109.82 the euro SLR 144.87 the yen x 100 SLR 114.50 Average annual inflation 10.16.% Inflation rate 15.9% Gross Domestic Product (GDP) SLR 3,578 bn GDP per capita SLR 179,000 Average annual real change in (GDP) 4% Private consumption as a proportion of GDP 67.0% Public consumption as a proportion of GDP 15.0% Investment as a proportion of GDP 29.0% Construction Gross value of construction output SLR 264.1 bn Net value of construction output SLR 143 bn Net value of construction output as a proportion of GDP 4%
THE CONSTRUCTION INDUSTRY
Construction Output
Analysis reveals that growth in the construction sector averaged 21.6% per year in real terms for the period between 2003 and 2007. Output growth was at its peak at 31.6% per year in the year 2005, but the subsequent decline in public and private investment from 2005 to 2007 led to a deceleration in construction growth to 29.1% in 2006 and to 21.8% in 2007. Unsettled security situation and adversity of the oil price hike together with the general economic slowdown has affected the construction industry.
