Sri Lankan Economy
- Exports: Increased for the second consecutive month in April 2017, registering a year- on –year growth of 12%. This was mainly driven by the low base effect in April 2016 (USD 710 million), the lowest monthly exports value since April 2013. Industrial exports was the largest contributor to export growth in April 2017 (56%) followed by Agricultural exports (43%).
- Imports: Increased by 10% in April 2017, on year-on-year and the largest contributor to the overall growth was intermediate goods (75 per cent) followed by consumer goods (20%) and investment goods (6%).
- Trade Balance: The deficit in the trade balance expanded in April 2017 by 8% year-on –year. The cumulative deficit increased substantially during the first four months of 2017 to USD 3,314 million from USD 2,606 million in April 2016.
- Inflation: In June 2017, CCPI increased to 6.1 % (from 5.5%) and CCPI core decreased to 5.1% (from 5.4 %) on year-on-year basis. NCPI decreased to 6.3% (from 6.4%) and NCPI core decreased to 4.1% (from 7.5%) on year-on-year basis.
- Credit Growth: Decreased gradually for the second consecutive month, to 20% in April 2017 from 20.4% in March 2017, showing the effects of the CBSL policy rate tightening.
- Global Growth: As per the World Economic Outlook update for July by the IMF, projects to growth at 3.5% in 2017 and 3.6% in 2018, which remains unchanged as per the forecasts in April.
- Global Oil Prices: Declined more than 8% in June, to its lowest level for 2017. At their recent meeting, OPEC has agreed with several member and non-member countries on production cuts to help clear excessive global stocks and boost flagging prices.
- China: According to the National Bureau of Statistics (NBS), China recorded a GDP growth of 6.9% on year-on –year basis for the Q2 of 2017 which was higher than the expectations (6.8 per cent). This boost in growth was in part driven by firmer exports and production.