By: Staff Writer
February 25, Colombo (LNW): Sri Lanka must prioritize the further development of its manufacturing and services sectors to ensure long-term economic sustainability.
Strengthening these areas will not only boost the country’s economic resilience but also create employment opportunities and drive export growth.
A key focus should be on fostering innovation within the industrial sector, encouraging technology-driven advancements, and enhancing value addition across various industries.
To achieve this, Sri Lanka must implement policies that promote research and development (R&D), encourage investment in high-tech industries, and streamline regulatory frameworks to attract both local and foreign investors.
By fostering an ecosystem that supports innovation and industrial modernization, the country can enhance its competitiveness in global markets while ensuring a steady expansion of its economy.
The manufacturing sector started 2025 on a positive note, improving in January compared to December, according to the Sri Lanka Purchasing Managers’ Index (PMI).
Compiled by the Central Bank of Sri Lanka (CBSL), the PMI for Manufacturing recorded an index value of 59.0 in January 2025, indicating continued expansion.
All sub-indices contributed positively to this growth, reflecting broad-based improvements. This was an increase from the index value of 57.2 in December 2024.
Notably, the textile and apparel sector experienced favorable developments, leading to growth in new orders, production, employment, and stock of purchases.
Additionally, the food and beverage manufacturing sector remained positive even after the December festive season. The Suppliers’ Delivery Time sub-index also increased in January, aligning with the rise in overall activity levels.
Looking ahead, the CBSL anticipates that manufacturing activities will continue their positive trajectory over the next three months, supported by expected improvements in business conditions.
In contrast, the services sector exhibited a slower expansion in January 2025 compared to December. The PMI for Services recorded an index value of 58.5 in January, lower than December’s 71.1.
Despite this slowdown, several sectors showed notable improvements in business activity. The financial services sector, for instance, continued to grow, driven by increased lending activities.
Tourism also played a significant role in the services sector’s performance, with accommodation, food, and beverage services experiencing steady growth due to rising tourist arrivals. Furthermore, education, professional services, and transportation-related businesses recorded improvements.
New business activities expanded in January, particularly in financial services, transportation, and tourism-related sectors. Employment also increased as companies continued to recruit, while backlogs of work declined month-on-month after an increase in the previous month.
The CBSL remains optimistic about the services sector’s prospects, expecting further improvements over the next three months, driven by seasonal demand and favorable macroeconomic conditions.
By prioritizing innovation and modernization in both manufacturing and services, Sri Lanka can ensure sustained economic growth and enhanced global competitiveness.
The manufacturing sector has kicked off 2025 with an improvement in January as against December, whilst the services industry has lagged, as per the Sri Lanka Purchasing Managers’ Index (PMI).
Its compiler, the Central Bank of Sri Lanka (CBSL), said the PMI for Manufacturing recorded an index value of 59.0 in January 2025, indicating a further expansion in manufacturing activities. All sub-indices contributed positively to this improvement. In December 2024, the index value was 57.2.reported favourable developments in January, driving expansions in the New Orders, Production, Employment, and Stock of Purchases sub-indices.
