ECONOMYNEXT – Sri Lanka’s manufacturing and services sectors continued to expand in June, according to the Central Bank of Sri Lanka’s Purchasing Managers’ Index, raising hopes that the economy will continue to recover.
“New orders and increased production are primarily driven by growth in manufacturing in the food and beverages sector,” the company said in a statement.
“With new orders and increased production, purchased inventory also increased.
“Meanwhile, supplier delivery times will be even longer in June, mainly due to congestion at major shipping ports.”
The industry outlook for the next three months shows improvement and economic conditions are expected to improve gradually.
But companies remained cautious about filling vacant positions.
Although tourism was sluggish during the off-season, most service sectors expanded.
“The Hajj festive season led to growth in wholesale and retail business activities,” the statement said.
“Furthermore, business activities in transportation services, financial services and other personal services also experienced substantial growth during the month.
“However, business activity in the accommodation, food and beverage services sector remained at the same level as the previous month due to the decline in off-season tourists.”
Employment increased in June as several companies added new employees.
“The outlook for business activity over the next three months continues to improve at a higher rate, supported by favorable macroeconomic conditions,” the statement said. (Colombo/16 July 2024)
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