By:Staff WriterColombo (LNW):Industrial production recorded week ending on Friday despite other economic indicators gradually are becoming negative, central bank announced.
Index of Industrial Production (IIP) in April 2023 decreased by 8.2 per cent to 80.1 compared to April 2022, mainly contributed by the decreases reported in the manufacture of Wearing apparel (-30.5 per cent), Other non-metallic mineral products (-27.8 per cent) and Rubber and plastic products (-40.0 per cent)
During the period under review (03.06.2023 to 09.06.2023), crude oil prices showed a mixed performance. At the beginning of the week prices increased mainly owing to the supply cut announcement by Saudi Arabia as well as the OPEC+ decision to extend current supply cut plans till end 2024. However, prices remained volatile during the week due to uncertainty about the next decision of the Federal Reserve, before declining towards the end of the week with demand concerns over weak Chinese export data. Overall, Brent and WTI prices decreased by US dollars 1.36 per barrel and US dollars 1.63 per barrel, respectively, during the review period.
Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 09th June 2023 increased by 44 bps to 20.73 per cent compared to the previous week. The reserve money decreased compared to the previous week mainly due to the decrease in the deposits held by the commercial banks with the Central Bank. The total outstanding market liquidity was a deficit of Rs. 78.847 bn by 09th June 2023, compared to a deficit of Rs. 6.831 bn by the end of last week. By 09th June 2023, the All Share Price Index (ASPI) increased by 0.74 per cent to 8,818.39 points and the S&P SL 20 Index increased by 0.30 per cent to 2,494.68 points, compared to the index values of last week.
During the year up to 09th June 2023, the Sri Lankan rupee appreciated against the US dollar by 23.8 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee appreciated against the Japanese yen by 30.1 per cent, the pound sterling by 18.8 per cent, the Euro by 22.4 per cent and the Indian rupee by 23.4 per cent during this period.
The gross official reserves were provisionally estimated at US dollars 3,483 mn as at end May 2023 including the People’s Bank of China (PBOC) swap equivalent to around US dollars 1.4 bn, which is subject to conditionalities on usability.