SL Manufacturing Sector shows signs of revival amidst improved economic conditions
August 12, Colombo (LNW): Sri Lanka’s manufacturing sector is showing signs of recovery after the severe foreign currency crisis of two years ago.
The June Index of Industrial Production (IIP) reached 93.0, a 3.3 per cent increase from the previous year, indicating a resurgence in industrial activity.
This revival is driven by a rise in both local and international demand, coupled with reduced production and funding costs.
The food manufacturing sector, in particular, saw a robust 17.9 per cent growth, reflecting increased domestic consumption and steady export demand.
Export earnings from food, beverages, and tobacco rose by 28.2 per cent in June, totalling $312.6 million for the first half of the year, marking a 25.6 per cent increase from the previous year.
However, the apparel sector remains under pressure, with a 10.6 per cent decline in June, primarily due to reduced demand from the US and Europe, although a recovery is anticipated as global economic conditions improve.
Other manufacturing segments, including chemical products and non-metallic minerals, also contributed positively, whilst some sectors like petroleum and beverage products saw declines.
*With inputs from Daily Mirror.
