Sunday, 11 August 2019 20:17

Industrial and plantation sectors grow amidst Sri Lanka’s economic revival

Sri Lanka ‘s industrial production and plantation sector growth signaled the country’s economic revival with the expansion of broad money supply , credit to the government , currency circulation and the surplus in market liquidity, Central Bank announced

During the first half of 2019, domestic tea production reported a marginal growth mainly due to the recovery in production during the second quarter.

Production of rubber increased with the support of favourable weather conditions while coconut production increased significantly continuing its growth momentum.

The Industrial Index of Production ( IIP) in June 2019 has increased by 2.2 per cent compared to June 2018.

Among the major sub divisions of the manufacturing industries, "Coke and refined petroleum products" (22.3%) and "Other non-metallic mineral products" (17.3%) have mainly contributed to this overall increase.

Weekly AWPR for the week ending 09th August 2019 decreased by 37 bps to 10.52 per cent compared to the previous week

Broad money (M2b) expanded by 8.7per cent, on a year-on-year basis, in June 2019. Net Credit to the Government from the banking system has increased by Rs. 72.2 bn in June 2019.

Credit to public corporations increased by of Rs. 3.9 bn in June 2019. Credit extended to the private sector increased by Rs. 63.2 bn in June 2019

The reserve money increased compared to the previous week mainly due to the increase in currency in circulation and deposits held by the commercial banks.

The total outstanding market liquidity was a surplus of Rs. 22.42 bn by end of the week, compared to a surplus of Rs. 34.25 bn by the end of last week.

By 9 th August 2019, the All Share Price Index (ASPI) increased by 0.82 per cent to 5,943.1 points and the S&P SL 20 Index increased by 1.68 per cent to 2,955.4 points, compared to the previous week.

During the year up to 09th August 2019 the Sri Lanka rupee appreciated against the US dollar (3.1 per cent).

Given the cross currency exchange rate movements, the Sri Lanka rupee appreciated against the pound sterling (7.7 per cent), the euro (5.3 per cent) and the Indian rupee (3.9 per cent) while depreciated against Japanese yen (1.1 per cent) during this period.

The total outstanding market liquidity was a surplus of Rs. 22.42 bn by end of the week, compared to a surplus of Rs. 34.25 bn by the end of last week.

(LI)

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