9 December 2016 12:00 am
Sri Lanka’s Index of Industrial Production (IIP), which measures the performance of the country’s manufacturing sector, recorded a 3 percent Year-on-Year (YoY) growth in the third quarter of this year, though activity slowed down towards the end of the quarter.
July recorded the highest growth at 3.8 percent YoY, which marginally fell to a growth of 3.5 percent YoY in August, prior to falling down to 1.6 percent YoY in September.
The September growth was the second lowest performance in 2016, with April recorded as the lowest with a 4.7 percent YoY contraction.
The third quarter growth followed after a 1.1 percent YoY growth in the IIP in the second quarter due to the consecutive drought and flooding the country experienced. The IIP had experienced a growth of 4.8 percent YoY during the first quarter.
In comparison, Sri Lanka’s gross domestic product grew at 2.6 percent YoY in the second quarter, and 5.5 percent YoY in the first quarter. Food product manufacturing, weighted at 35.2 percent of total industrial activity, grew by 0.7 percent Quarter-on-Quarter (QoQ) during the third quarter, amidst a year of lukewarm local consumption levels.
Wearing apparel manufacturing, weighted at 19.8 percent of the total, declined by 2.8 percent QoQ. Apparel exports had also seen a QoQ decline in July and August, while also experiencing a YoY decline in August, according to the Central Bank data.
The manufacture of ‘other non-metallic mineral products’, encompassing 7.8 percent of the IPP’s scope, grew by 4.2 percent QoQ.
Manufacture of petcoke and refined petroleum products, weighted at 7.4 percent, grew by 8.2 percent QoQ, while rubber and plastic products, weighted at 5.7 percent, grew by 2.6 percent QoQ, and chemicals and chemical products, weighted at 4.1 percent, grew by 5.1 percent QoQ.