Sri Lanka records growth in industrial activities in March 2018
Sri Lanka’s Department of Census and Statistics has reportedly noted that industrial activity in the country had grown 11.8 percent in March 2019 from a month earlier.
The Index of Industrial Production (IIP), compiled by the Census and Statistics Department, was reportedly recorded at 116.5 points in March, the highest since the index started in January 2016, beating 110.8 points in October.
A value over 100 means the index has grown compared to the base year of 2015.
The Purchasing Managers’ Index maintained by the Central Bank of Sri Lanka has also grown in March, with the manufacturing sector reaching a 46-month high.
According to reports, March is usually a month with high industrial activity, as the country prepares for the festivities in April, when many take long holidays.
Food production, which makes up over a third of industrial activity in the IIP, grew 18.7 percent in March from February to 114.5 points.
Apparel production, which makes up around 20 percent of industrial activity, had reportedly grown 1.1 percent to 103.3 points.
Manufacturing of other non-metallic mineral products, which comprises of around 7.8 percent of the industrial sector, have grown by 12.8 percent to 128.6 points.
The equally large coke and refined petroleum production industry had grown 3.4 percent to 109.5 points.
Reports further state that chemicals production was the highest gainer in March, up 32.7 percent to 125.7 points in March, while paper-related production was the biggest loser, falling 17.7 percent to 77.7 points.
The IIP has also recorded a 5.7 percent growth in March from a year earlier amid low growth across most major industries, and declines across minor activities.
OSL take:
Sri Lanka’s key economic sectors have been recording growth rates until the Easter Sunday attacks. However, the country is now showing signs of returning to normalcy and is building up on the economic strength built during the past few years. The island nation also enjoyed free trade agreements and trade concessions with many foreign countries. Hence, foreign businesses/investors could look at entering Sri Lanka’s industrial manufacturing sector.
| Article Code : | VBS/AT/16052019/Z_2 |