Sri Lanka’s manufacturing and services sectors showed strong growth in November, according to the latest Purchasing Managers’ Index (PMI) data.
The manufacturing PMI recorded an index value of 53.3 in November 2024, indicating an expansion in manufacturing activities on a month-on-month basis, with positive contributions from all sub-indices. The Central Bank of Sri Lanka (CBSL), which compiles the PMI, reported that the New Orders sub-index expanded during the month, largely driven by the textile and apparel sector. Additionally, the Production sub-index saw growth, mainly due to the food and beverages sector.
The Employment and Stock of Purchases sub-indices also remained expanded, aligning with the growth in New Orders and Production. However, the Suppliers’ Delivery Time remained lengthened during November. The CBSL noted that the outlook for manufacturing activities in the coming three months remains positive, though some manufacturers, especially in the food sector, have concerns regarding the limited supply of key raw materials.
In the services sector, the PMI indicated further expansion, with the Business Activity Index reaching 60.5. The expansion was driven by improvements across most sectors. Significant growth was observed in the financial services sector, amid increased lending activities, and in the accommodation, food, and beverage sectors, which benefitted from a rise in tourist arrivals.
The wholesale and retail trade business also saw an uptick ahead of the festive season, despite the adverse effects of unfavorable weather on sales. The CBSL reported that new business activities grew in November, primarily due to expansions in financial services and accommodation, food, and beverage sectors.
Employment rose as businesses recruited to meet growing economic activities, driven by the tourist season and the festive period. Additionally, Backlogs of Work continued to decline in November. The CBSL added that business activity expectations for the next three months are improving at a higher rate, spurred by the ongoing tourist season and the approaching festive season.