Colombo (News 1st) – A new World Bank report states that Sri Lanka’s industrial production barely grew in the second quarter of 2018 with exports contributing little to growth and recent import tariff hikes counter-productive to increasing competitiveness.

In its South Asia ‘Economic Focus’ report, the bank said, Growth is strong in South Asia, but not driven by exports or manufacturing. In India and Sri Lanka, the contribution of investment is projected to be relatively more important in 2018. But even there, the World Bank said, the main driver remains domestic consumption.

According to the report, Industrial production in South Asia is holding well, but it grows slower than GDP in most countries. South Asia’s industrial production grew by only 5.4% in the second quarter of 2018, slightly lower than a quarter before.

In India, it grew by 5%, in Pakistan by 4.5%, and in Sri Lanka by only 0.6%.