Sri Lanka's PMI indicate growth in manufacturing, service sectors

As per the SL Purchasing Managers’ Index (Manufacturing and Services) of statistics department of the Central Bank of Sri Lanka, in March, the manufacturing sector PMI surged to 62.5, marking a substantial increase from February’s 56.0 index points, indicating a robust pace of expansion and the sector’s strongest performance in three years.

The manufacturing sector’s buoyancy is attributed to strong performances across all sub-indices, particularly driven by new orders and production in food and beverage, as well as textile and apparel industries even as optimism prevailed among manufacturers, notably in anticipation of upcoming festive season.

Similarly, the services sector PMI soared to 67.7, significantly up from February’s 53.0 index points.

The expansion in both sectors signals a positive trajectory for Sri Lanka’s economy, suggesting a strong recovery from the crisis.

Moreover, the decline in prices during March reflects lower-than-expected inflation, further supporting economic stability even if looking ahead, despite a temporary slowdown in April following the seasonal peak, manufacturers maintained positive outlooks for the next three months.

Similarly, the services sector witnessed a surge in activity, spurred by festive demand in wholesale and retail trade.

Meanwhile, financial services benefited from the central bank’s accommodative monetary policy, evidenced by easing financial conditions and declining borrowing rates even as accommodation, food and beverage, as well as transportation and professional services, also contributed to the sectoral growth.

Fibre2Fashion News Desk (DR)