March 18, Colombo (LNW): As Sri Lanka prepares for the upcoming Sinhala and Tamil New Year, the nation’s economy has seen continued growth, with both the manufacturing and services sectors showing positive performance throughout February.
The festive season has provided an added impetus, contributing to further expansion across various industries.
The Purchasing Managers’ Index (PMI), which measures the health of the manufacturing and services sectors, recorded values of 56.8 and 56.5 respectively for February, signalling consistent growth in both areas.
Whilst this marks a slight slowdown from January’s readings of 59.0 for manufacturing and 58.5 for services, the index values still indicate robust expansion, as anything above 50.0 reflects growth.
Manufacturing activities were notably driven by the food and beverage sector, as businesses within this field geared up for the festive demand. The sector saw positive movement in both new orders and production levels, a clear indicator that preparations for the festive period are well underway.
Additionally, employment within this sector has seen an uptick, with companies hiring workers to meet the increasing demand, possibly helping to replace jobs lost during the economic downturn.
The survey conducted by the Central Bank revealed that both employment and the volume of stock purchases grew, suggesting that firms are proactively preparing for the surge in demand.
In the services sector, growth has been driven by a diverse range of industries, from financial services to wholesale and retail trade, education, real estate, and more.
Notably, the financial services sector has seen a boost, largely due to increased lending activities facilitated by lower interest rates.
This has led to the emergence of new business opportunities, further stimulating economic activity. Additionally, other sectors, including accommodation, food and beverage, insurance, and personal services, have all shown signs of growth when compared to the previous month.
The services sector has also experienced a rise in employment, as companies across various industries ramp up hiring in preparation for the festive season.
The ongoing positive trend in employment reflects the broader economic recovery, with businesses expanding to meet the demands of the season.
Looking ahead, both the manufacturing and services sectors remain optimistic, with expectations for continued growth, largely driven by the upcoming festive season.
