Sri Lanka’s manufacturing and services activities expand in June
The Morning: The Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 51.9 in June, indicating an expansion in manufacturing activities.
All the sub-indices, except Employment, remained above the neutral threshold during the month.
The New Orders and Production sub-indices continued to grow during June.
Further, Stock of Purchases also expanded, in line with the increase in New Orders and Production, although Employment contracted during the month.
Several respondents indicated a strategic move to hire only for essential positions and maintaining minimal raw material inventories, in response to heightened uncertainties in the global trade environment.
Meanwhile, Suppliers’ Delivery Time further lengthened during the period. The industry outlook for the next three months remains positive.
However, respondents expressed their concerns over uncertainties surrounding US trade policies.
OSL take:
Sri Lanka’s ongoing economic activities and overall economic expansion are evident by the steady growth being recorded in the country’s manufacturing sector. The growth of the new orders and production sub-indices are further indicative of the growth momentum in Sri Lanka’s manufacturing sector and thereby an expansion in the business/investment opportunities in the sector. Sri Lanka’s geographical positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed by the country with many foreign countries and the business conducive environment have all added to the expanding business/investment opportunities. Given the positive movement of all key economic indices in Sri Lanka and the overall expansion of key economic sectors, foreign businesses/investors could explore the many business/investment opportunities, especially in the manufacturing sector. The growth, profits and expansion of businesses already engaged in Sri Lanka’s manufacturing sector indicate the increasing business potential in the sector. Foreign businesses/investors while exploring the many lucrative opportunities in Sri Lanka’s manufacturing sector, could also look at expanding operations through partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20250721/Z_1 |