Weak demand for tea, flowers slows economy

Weak demand for agricultural exports has led to a slowdown in the economy, in a second consecutive dip at 5.5 per cent for the second quarter ending June.

Tea and coffee exports were most affected in three-month period with export sales dropping by almost a fifth, according to fresh official statistics released yesterday. Sluggish activity in the international trade of agricultural produce, the most important economic pillar, could scuttle growth projections for the year where the State has forecast the Gross Domestic Product to expand by 6.9 per cent for the year.