Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a slower expansion in services activities in April 2024 as reflected by the Business Activity Index, which recorded an index value of 56.7.
The expansion in Business Activities was driven by the improvements observed across several sub-sectors.
Business activities in the financial services sub-sector continued to grow following the reduction in policy rates in March 2024.
Further, business activities in the wholesale and retail trade sub-sector experienced considerable growth amid the seasonal demand. Programming and broadcasting, telecommunication and real estate sub-sectors also recorded positive developments during the month. The accommodation, food and beverage sub-sector declined slightly during the month in line with the decline in tourist arrivals on a month-on-month basis.
New Businesses increased in April, particularly with the increases observed in wholesale and retail trade, financial services and real estate sub-sectors.
Expectations for Business Activities for the next three months continued to rise, yet at a slower rate, supported by favourable macroeconomic conditions.
The Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 42.0 in April 2024, indicating a contraction in manufacturing activities following the seasonal pattern. New Orders, Production, Employment and Stock of Purchases sub-indices declined during the month, resulting in an overall decline in the index.
The industry expectations for the next three months remain positive, anticipating a gradual increase in demand.
