Sri Lanka’s economic sectors gear up for further growth in early 2025
January 20, 2025 10:30 am
Sri Lanka’s Purchasing Managers’ Index (PMI) for December 2024 recorded growth in both manufacturing and services sectors.
The Central Bank of Sri Lanka (CBSL) reported that the Manufacturing PMI rose to 57.2 in December, while the Services PMI reached 71.1.
In its statement on the Sri Lankan PMI, the Central Bank explained that the increase in the Manufacturing PMI which rose to 57.2 in December 2024 from 53.3 a month earlier was primarily driven by higher production orders during the festive season, particularly in the food and beverage manufacturing sector.
However, new orders and production in the textile and apparel sectors decreased on a month-on-month basis due to a drop in orders from key garment export destinations during the seasonal winter holidays.
The CBSL also noted that expectations for manufacturing activities over the next three months point to further improvement, with an optimistic outlook for better economic conditions.
Meanwhile, the PMI for the services sector indicated that expansion in December reached 71.1 from 60.5, driven by significant growth in business activities across most sectors.
The CBSL highlighted that wholesale and retail trade saw strong growth during the festive season and the peak of the tourist season.
Additionally, business activities in the financial services sector improved substantially, driven by an increase in lending activities.
The CBSL further noted that expectations for business activities over the next three months remain positive, albeit at a slower pace, supported by favorable macroeconomic conditions.
