14 September 2018 10:12 am
Sri Lanka’s manufacturing activities expanded during July by 1.1 percent over the same month in 2017 showing signs of recovering industrial activities in an economy beset by structural deficiencies.
The Index of Industrial Production in July was 105.9, advancing from 104.8 in June.
An index value over 100 reflects a gain in the industrial production.
The gain in the industrial production index depicts strengthening manufacturing sector in the economy.
A strong manufacturing sector is a pre-requisite for industrial excellence, but has long been absent in the Sri Lankan economy.
Sri Lanka lost the opportunity of joining the East Asian supply chains in the 80s and become value-added manufacturer for the world’s most recognized brands. As a result the country’s exports kept lagging behind for over three decades.
July’s industrial activities were led by the textile manufacturing sector which grew by 13.7 percent from a year ago.
Meanwhile the printing and reproduction of recorded media grew by 37.2 percent, manufacture of coke and refined petroleum products grew by 26.5 percent and basic metals by 7.4 percent over the same month last year.
The food production however languished as such activities grew by just 0.1 percent YoY.
Meanwhile July’s industrial production was weighed by the decline in the manufacture of tobacco products which fell by 15.5 percent.
Among further falls in sub-sectors were the manufacture of wood and products of wood except furniture by 14.1 percent, paper and paper products by 24.4 percent, chemical and chemical products by 11.6 percent and pharmaceutical products by 14.9 percent over the same month last year.