April industrial production makes notable gains

The industrialists are gradually adding heft to their industries, due to the normalising local economic conditions and global supply chain conditions, as industrial production in Sri Lanka made continuous gains through April.
In April, Sri Lanka’s industrial production, measured by the Index of Industrial Production, recorded an index value of 88.3, which was up by a robust 10.3 percent from the same month a year ago.
On a monthly basis, the index added 0.8 percent to 90.5 index points.
By this time a year ago, Sri Lanka was still plagued with runaway inflation, recovering but inadequate foreign currency liquidity and supply squeeze and mostly the record-high interest rates, together were weighing heavily on the industries.
Global inflation and the fastest monetary tightening cycle in the West too were adding pressure on the manufacturing activities.
But as the economies, both at home and abroad, are seeing conditions turning conducive to the industries, the local industries are now making a gradual recovery in almost all areas.
For instance, the key sectors such as manufacturing of food products, tobacco, textiles, wearing apparel, rubber and plastic products and chemical and chemical-related products, among others, made notable gains, both from a year ago as well as from a month ago levels.
Food products appear to have been getting a tailwind from the recovering consumer spend at home, as the rates decline and people see their sentiments improving somewhat.
But the higher taxes continue to put a damper on consumption as well as on all other sectors from reaching their full potential.