According to a central bank-compiled Purchasing Managers Index, Sri Lankan company activity in manufacturing and services continued to grow in February, helped along by the approaching holiday season.
A continuous increase in manufacturing activity is indicated by the PMI manufacturing, which increased from 59.0 in January to 56.8 in February (above 50).
The central bank stated that the majority of businesses, especially those in the food and beverage manufacturing industry, are preparing for the approaching holiday season, which is fueling increases in the new orders [60.5] and output sub-indices [53.0].
Both employment (57.0) and the stock of purchases (55.0) increased, suggesting aggressive measures to meet rising demand.
According to the central bank, suppliers’ delivery times continued to grow in February, reaching 56.6, indicating the heightened strain on them.
“The forthcoming holiday season is the primary reason for the positive outlook for manufacturing activities over the next three months.”
A slower increase in services activities was indicated by the February 2025 index number of 56.5 for Sri Lanka’s Purchasing Managers’ Index for Services.
According to the central bank, business activity increased as a result of the improvements seen in the majority of the sectors.
“The financial services industry’s business operations kept getting better, helped along by more lending activity.”
Improvements were also seen in business operations pertaining to education and wholesale and retail trade.
In February, there were additional rises in commercial activity connected to real estate, professional services, lodging, food and beverage, insurance, and other personal services.\
The growth in financial services, lodging, food and beverage, education, other personal services, real estate, and transportation-related activities led to a slower increase in new businesses in February (58.5) compared to January (59.0).
“As a result of hiring across numerous companies in anticipation of the holiday season, employment continued to increase [59.6].”
Work backlogs continued to decrease at a faster rate, reaching 45.6.
“Due to the approaching holiday season, expectations for business activities for the following three months continued to improve at a higher rate [81.3].”
