Sri Lanka’s manufacturing PMI 55.5 in August, signals activity expansion
The Morning: Sri Lanka’s purchasing managers’ index (PMI) for manufacturing was 55.5 in August, indicating an expansion in manufacturing activities, but at a slower rate compared to the previous month.
All the sub-indices, except for employment, remained above the neutral threshold in the month, a Central Bank of Sri Lanka press release said.
The expansion in new orders and production was mainly driven by the manufacturing in the food and beverage sector.
Further, stock of purchases expanded during the month in line with the new orders and production.
The employment sub-index decreased month-on-month in August and suppliers’ delivery time continued to lengthen.
Expectations for manufacturing activities over the next three months remained positive, primarily due to the optimistic outlook on year-end seasonal demand, in spite of election-related uncertainties.
OSL take:
Sri Lanka’s manufacturing industry has shown a steady growth through the years, even amidst the economic crisis experienced in the past few years. The incentives presented by the local authorities and the many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have all helped boost operations in the country’s manufacturing industry. This has also opened up a host of business/investment opportunities, direct and indirect, for foreign businesses/investors exploring opportunities in the region. The overall expansion of Sri Lanka’s economy has resulted in the further growth of the country’s manufacturing industry, which in-turn has expanded business/investment opportunities. Given the steady growth and business potential as Sri Lanka targets on becoming a regional hub, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s manufacturing industry while also looking to form partnerships or joint ventures with local businesses engaged in the industry to further expand operations locally and internationally.