Manufacturing suffers seasonal dip, services sector growth slows in April

Monday, 19 May 2025 03:21 - - {{hitsCtrl.values.hits}}

CBSL says PMI survey points to optimistic outlook for next three months

The Purchasing Managers’ Indices in April have reflected the seasonal contraction in Manufacturing activities and an expansion in Services activities, though lower than in March.

Following the seasonal pattern, the Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) declined to 40.1 in April. The key sub-indices of Production, New Orders, Stock of Purchases, and Employment contracted during the month, resulting in an overall decline in the index compared to the seasonal peak in March.

PMI compiler the Central Bank of Sri Lanka (CBSL) said according to respondents, the contraction in the New Orders sub-index was mainly attributed to the fading festive season demand, particularly in the food and beverage sector. Further, the decline in the Production sub-index was largely a result of fewer working days in April, as many manufacturing facilities temporarily halted their operations during the Sinhala and Tamil New Year season. The Employment sub-index declined as manufacturers scaled back temporary workforces following the seasonal production requirements.

Moreover, the Stock of Purchases sub-index also declined in April, alongside the decreases in the New Orders and Production sub-indices.

Meanwhile, Suppliers’ Delivery Time further lengthened in April, mainly due to the disruptions to supply chains during the festive season.

Outlook for manufacturing activities for the forthcoming three-month period remains optimistic due to the anticipated improvements in demand conditions, the CBSL added.

The Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded a value of 60.6 in April, indicating a slower expansion in services activities.

Business activities expanded in April supported by improvements observed across several sectors. Accordingly, business activities related to wholesale and retail trade showed a notable expansion driven by the festive demand. Further, business activities in the financial services sector also continued to improve underpinned by increased lending activities. Nevertheless, business activities in general were impacted by the extended holidays during the month, while freight forwarding companies, in particular, were affected by the uncertainties that prevailed surrounding the import tariffs imposed by the US.

New Businesses increased in April primarily due to the expansions observed in the financial services and wholesale and retail trade related activities.

Employment continued to increase due to new recruitments made by several companies. Backlogs of Work continued to decline in April.

The CBSL said expectations for Business Activities for the next three months continued to improve at a higher rate amidst the temporary suspension of import tariffs by the US.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.