Sri Lanka’s industrial production shows growth in May, June

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Sept 05, 2016 (LBO) – Sri Lanka’s index of industrial production showed a pick up in May and June, the Department for Census and Statistics said, in its tentative release of the index on a quarterly basis.

“The Index of Industrial Production (IIP) … can be used to identify the turning points in economic development at an early stage. Monthly IIP will be released quarterly with a time lag of 63 days. The base year for the IIP compiled by DCS is 2015.”

Director General of DCS, Dr. A. J. Satharasinghe stated that the weights for compiling the IIP were estimated using the Annual Survey of Industries 2015 conducted by the DCS. The weights were derived based on the value added of the products of manufacturing sector.

The manufacturing of food products was reported to be the major contributor for the total industrial value added (35.2 percent) followed by wearing apparels (19.8 percent) and non- metallic mineral products (7.8 percent).

According to the IIP values released for the second quarter 2016, the volume of industrial production shows a decrease in the month of April 2016 by 4.7 percent compared to the annual average index of 2015. In the months of May it turns to a positive value that is 2.6 percent and in June it is 6.1 percent increase compared to the average monthly index in 2015.

The overall industrial production for the second quarter of 2016 has increased by 1.1 percent compared to average production in 2015.

Wearing apparel industry (15.6 percent), Tobacco products showed remarkable increases (14.6 percent) in productions during June 2016 compared to the average monthly production in 2015. The volume of food products has decreased by 2.1 percent in April and it has increased by 2.2 percent and 2.4 percent in May and June 2016 respectively. Production of Tobacco showed a decrease in April but in May and June increased by 5.8 percent and 14.6 percent respectively.

The increase corresponding to Food products and beverages for the first quarter was 0.8 percent and 2.7 percent respectively. Other non-metallic mineral product industry showed 1.9 percent, 2.5 percent, 8.7 percent increase in production in the months April, May and June respectively and this industry showed a quarterly increase of 1.1 percent compared to average production of this industry in 2015.