Industrial production extends declining trend to April

Sri Lanka’s industrial production extended its declining trend to April, with most of the manufacturing segments remaining weak, on the back of softening global demand, seasonal patterns and lingering domestic conditions. 

In April, the Index of Industrial Production (IIP), which measures the manufacturing heft of the economy, dropped by 0.7 index points (seasonally adjusted), recording an index value of 87.1 in April, from an index value of 87.7 recorded in March.

The key exporting industries – textiles, wearing apparels and rubber and plastic production, fell by 0.6 percent, 2.6 percent and 3.2 percent on month-on-month in April amidst the global slowdown. 

On year-on-year, they dipped by 7.4 percent, 30.5 percent and 40 percent.

Meanwhile, the food production and beverages declined by 0.1 percent and 0.6 percent in April, despite the festival period. The tobacco production also fell by 0.3 percent in the month.

In addition, paper and paper production fell by a sharp 8.2 percent in April.  On a positive note, coke and refined petroleum production was up by 21.2 percent in the month. 

The April index value remained below the 87.3 index value a year ago when the country plunged into the economic crisis, crashing the industrial production from the 107.9 index value recorded in March last year.