Sharp rise in local cement production
By Ishara Gamage
Cement imports grew by a record 58.9 per cent Year on Year to reach 404,000 Mt in the month of June, overtaking domestic cement production, which increased by 28.3 per cent Year on Year to reach 370,000 Mt, according to Central Bank data.
According to market analysts cement production and imports recovered in June by 42.6 per cent YoY and June was the first month this year to record a positive growth in cement imports.
They also suspect there would be an increased demand for local cement in the coming months mainly due to lower housing loan rates and other positive developments.
Sri Lanka’s domestic cement production and imports had fallen by over 40 per cent YoY since March. In May overall cement supply contracted by a record 63.2 per cent YoY to 349,000Mt.
Overall cement supply during the first half of the year (January-June) is down by 23.8 per cent YoY at
3,157, 000 Mt compared to the same period last year.
The decline was mainly due to 39.4 per cent YoY drop in cement imports during the period while local cement production only recorded a marginal contraction of 0.4 per cent YoY producing 1,643,000 Mt of cement.