Industrial production rebounds in May

Sri Lanka’s industrial production in the manufacturing sector has recorded a strong rebound in May as lockdown measures were relaxed starting from the month, although well below the pre-COVID-19 levels, according to the Index of Industrial Production (IIP) of the Department of Census and Statistics (DCS).

In May, the IIP rebounded to 79 index points after falling to a record low of 49.7 index points in April.

However, the DCS noted that the May index had decreased by 25.5 percent compared to the same month in 2019. 

The index entered into a declining trend from last November. 

On year-on-year (YoY) basis, all segments of the index except food production, manufacture of coke and refined petroleum products and manufacture of basic pharmaceutical products, had reported negative growth rates in May. 

Food production recorded 5 percent YoY growth in May while manufacture of coke and refined petroleum products and manufacture of basic pharmaceutical products recorded 41.4 percent YoY and 10.4 percent YoY growth rates in the month. 

The manufacturing activities of several key industrial sectors had recorded substantial declines in the month.

The manufacture of wearing apparels, manufacture of rubber & plastic products, manufacture of electrical equipment and beverages have declined by 58.7 percent YoY, 70 percent YoY, 63 percent YoY and 48.1 percent YoY in the month respectively. 

Production of tobacco products and manufacture of textiles had only declined 10.6 percent YoY and 18.2 percent YoY in the month.