Sri Lanka’s manufacturing and services sectors record growth in March 2019
The Central Bank of Sri Lanka has reportedly stated that the country’s manufacturing and services sectors have recorded a growth in March 2019 from a month earlier ahead of the seasonal demand for the traditional Sinhala and Tamil New Year.
The Sri Lanka Purchasing Managers’ Index (PMI) for manufacturing has grown to 66.9 points in March from 50.6 points in February, reaching a 46-month high, with growth across all sub-indices, reports state.
An index value of over 50 indicates a growth over the previous month.
“The increase of PMI in March was largely attributable to increase in New Orders in line with the seasonal demand, especially in manufacturing of food and beverages,” the Central Bank of Sri Lanka has stated.
“The Production also increased significantly, with the intention of achieving expected production levels ahead of the New Year holidays in April.”
Employment and stock purchasing also increased, the Bank has further noted.
Key exporters in the textile and apparel industry had had to work overtime in order to fulfill orders ahead of the holiday season, reports added.
In the services sector, Sri Lanka’s PMI has grown to 56.3 points in March, from 53 points in February.
The business activity sub-index has grown to 63.5 points from 54.7 points, reaching a three-month high ahead of the holidays.
“The expansion in Business Activities was mainly seen across wholesale and retail trade, and transportation sub sectors due to new year festive season,” the Central Bank has reportedly stated.
OSL take:
The growth recorded by the manufacturing and services sectors in Sri Lanka in the month of March is indicative of the continuous growth momentum of the country’s key economic indicators. Hence, foreign businesses/investors could explore business opportunities in Sri Lanka that could be mutually beneficial to both parties.
| Article Code : | VBS/AT/02052019/Z_2 |