By: Staff Writer
March 18, Colombo (LNW): Sri Lanka’s manufacturing and services grew strongly last month partly helped by seasonal factors, based on a Purchasing Managers’ Index compiled by the Central bank.
“Further, Employment and Stock of Purchases also increased on a month-on-month basis in line with the improvements in New Orders and Production.”
Manufacturing sector recorded remarkable recovery in its performances on February 2024, indicating a continued expansion in production activities, Central Bank report revealed. .
The expansion in New Orders and Production was mainly driven by the manufacture of food & beverages sector.
Many respondents mentioned that they are preparing for the upcoming festive demand. However, New Orders and Production in the manufacture of textiles& apparel sector decreased on a month-on-month basis he report added.
Meanwhile, Employment and Stock of Purchases expanded during the month in line with the New Orders and Production. Further, Suppliers’ Delivery Time continued to lengthen in February, on par with the expansion in manufacturing activities and prolonged shipping disruptions caused by the Red Sea crisis
Expectations for the manufacturing activities for the next three months remain positive, mainly due to the upcoming festive season, Central Bank claimed.
Services sector indicated an expansion in services activities in February 2024 as reflected by the Business Activity Index, which recorded an index value of 53.0.
The continued expansion in Business Activities was driven by the improvements observed across several sub-sectors.
Accordingly, business activities in financial services sub-sector increased further aligning with the prevailing low market interest rates.
Further, positive developments were also recorded in transportation and education sub-sectors during the month. Meanwhile ,accommodation, food and beverage sub-sector continued to grow amid tourist arrivals recording the highest since January 2020.
New Businesses increased in February, particularly with the increases observed in transportation and financial services sub-sectors. Employment increased due to new recruitments made by several companies ahead of the festive season. Meanwhile, Backlogs of Work continued to decline during February. Expectations for Business Activities for the next three months continued to rise in February due to upcoming New Year and Ramadan season, Central Bank disclosed.
