Sri Lanka’s Purchasing Managers’ Index records increase in country’s factory production in October
The Purchasing Managers’ Index (PMI) of Sri Lanka has reportedly recorded an increase in factory production in October propelled by food and beverage manufacturing to meet festive demand while services also grew but without new jobs owing partly to automation.
A statement issued by the Central Bank of Sri Lanka has stated that the manufacturing PMI had increased 2.9 points to 57.6 in October 2019 mainly due to increases in production and new orders compared to September 2019.
“The increase in production and new orders was observed especially in manufacturing of food and beverages sector to meet the upcoming festive season demand.”
Employment has also increased in manufacturing of food and beverages and wearing apparel sectors.
“This was mainly due to the recruitment of new employees to increase the production levels to meet the higher demand in the period ahead.”
According to the Central Bank, the monthly PMI, prepared from a survey of purchasing executives in large companies in the Western Province, provides indications about current and future business conditions.
An index value below 50 records a decline from a month earlier, and over 50 denotes a growth.
Services PMI increased 4.2 points to 56.9 in October 2019, mainly supported by strong growth in new businesses and business activities compared to September 2019.
“New businesses reached a 19-month high with financial services and insurance sectors dominating in securing new businesses,” the Central Bank statement has noted.
“However, employment in the services sector continued to remain below the 50-threshold level for the seventh consecutive month, due to delays in recruitments and automation of manual work,” the statement has added.
OSL take:
The increase recorded in Sri Lanka’s factory production in October according to the Purchasing Managers Index is a positive indication of the the positive economic activities in the country as well as the growing business potential. All these are indicative of the expanding business/investment opportunities in Sri Lanka, which could be explored by foreign businesses/investors. Also, Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/20191119/Z_3 |