Sri Lanka’s Manufacturing Purchasing Managers’ Index records increase in June
Sri Lanka’s factory production recovery has reportedly gathered momentum in the month of June with services also recovering from a record low following the April suicide bombings.
The Manufacturing Purchasing Managers’ Index has recorded an increase of 3.2 points to 53.9 from the month of May.
“This expansion in manufacturing PMI is mainly attributable to the significant recovery in employment, especially, in manufacturing of food and beverages and textiles and wearing apparels sectors,” a statement issued by the Central Bank of Sri Lanka has stated.
The monthly Manufacturing Purchasing Managers’ Index (PMI) compiled by the Central Bank of Sri Lanka is prepared from a survey of purchasing executives in large companies in the Western Province and provides indications about current and future business conditions.
According to reports, the PMI is considered more valuable to investors than other economic indicators based on historical data.
Expansion in new orders and production, particularly in manufacturing of food and beverages, also contributed to the improvement of PMI in June 2019.
“Many respondents also highlighted that New Orders and Production recovered to a greater extent in June with the normalization of economic activities after the disruptions caused by the Easter Sunday attacks,” the Banks’ statement has noted.
OSL take:
The increase in the Central Bank’s Manufacturing Purchasing Managers’ Index is indicative that Sri Lanka’s economy as definitely on the path to recovery following the negative impact suffered in the aftermath of the Easter Sunday attacks. The above mentioned index is one other economic indicator that is on the growth path. All other indicators on industrial activity and tourist arrivals have also recorded an increase in the past few months. The economic policies of the government of Sri Lanka as well as the ease of doing business environment in the country continue to encourage foreign businesses/investors in to the country. After all, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as the trade concessions enjoyed by the country has made the island a much sought after business destination in the South Asian region.
| Article Code : | VBS/AT/18072019/Z_3 |