Sri Lanka’s manufacturing and services sectors rebound in September following August dip
The Purchasing Managers’ Index (PMI) compiled by the Central Bank of Sri Lanka (CBSL) has noted that the country’s manufacturing and services sectors have bounced back in September 2021 after suffering a sharp dip, the previous month, August.
The PMI has noted that the manufacturing sector had rebounded to 54.3 in September 2021, which is an increase by 9.2 index points compared to August 2021.
The services PMI has recorded an index value of 52.2 in September 2021 following the dip observed in August 2021.
In August, the manufacturing PMI had fallen by 12.7 points and the services PMI by 46.2 points.
According to the CBSL, the manufacturing rebound in September was mainly attributable to the significant improvements observed in New Orders and Employment sub-indices.
New orders, particularly in the manufacture of textile and wearing apparel and food and beverages sectors, contributed considerably to the overall improvement in the PMI.
“Some respondents in the textile and wearing apparel sector mentioned that they received a large number of export orders in September with the normalisation of the economies in the major export destinations,” the CBSL has stated.
The rebound in the services PMI in September has been underpinned by the increases in New Businesses, Backlogs of Work and Expectations for Activity sub-indices.
CBSL has noted that new businesses increased in September compared to the previous month mainly with the improvements observed in transportation, solely related to freight forwarding, financial services, education and telecommunication sub-sectors.
“As such, Business Activity sub-index edged up in September, yet continued to remain below the threshold level,” CBSL has added.
OSL take:
The overall growth momentum of the country’s economy has helped the upward trajectory of Sri Lanka’s manufacturing and services sectors. The ongoing development programme and the increasing opportunities due to Sri Lanka positioning itself as an emerging business destination in the South Asian region have helped boost the key economic sectors in the country. Also, the many trade agreements and concessions enjoyed by the country have helped increase the business potential in Sri Lanka’s manufacturing and services sectors. Given the growth in the business potential of Sri Lanka’s manufacturing and services sectors, foreign businesses/investors could explore the growing business/investment opportunities in these sectors.
| Article Code : | VBS/AT/20211025/Z_2 |