Economy robust in March

Friday, 18 April 2025 00:00 - - {{hitsCtrl.values.hits}}

Manufacturing hits four-year high, services surge in March as per PMI
Industry outlook for both sectors in next three months is positive
Export-oriented manufacturers and service providers remain cautious on growing uncertainties in global trade

The country’s manufacturing and services sectors in March have expanded as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank (CBSL) said.

The Manufacturing PMI recorded an index value of 63.9 in March 2025, recording the highest value in four years.

This expansion was attributable to positive contributions from all sub-indices posted month-on-month expansions, reflecting a continued expansion in manufacturing activities, driven by the strong seasonal demand.

In February, the Manufacturing PMI value was 56.8, while in January it was 59 as opposed to 57.2 in December 2024.

Most of the survey participants, particularly within the food and beverages and textile and wearing apparel manufacturing sectors, were the main contributors to the growth in the overall index, driving sharp expansions in the New Orders and Production sub-indices.

In addition, both Employment and Stock of Purchases recorded expansions during the month, in line with the increases in New Orders and Production to accommodate growing demand.

However, Suppliers’ Delivery Time continued to lengthen during the month, reflecting the increased pressure on suppliers.

The outlook for manufacturing activities for the next three months remains positive. However, the CBSL said many firms, especially export-oriented manufacturers, are concerned about the growing uncertainties in global trade.

Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) recorded an index value of 69.8 in March 2025, indicating a considerable expansion in services activities.

In February the index value was at 56.5 while in January it was 58.5 as opposed to 71.1 in December 2024.

The expansion in business activities expanded significantly supported by the improvements observed across most of the 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 also continued to improve attributable to increased lending activities.

Additionally, professional services, other personal services, accommodation, food and beverage, and insurance related business activities also indicated improvements during the month.

The CBSL said New Businesses increased in March 2025, primarily due to expansions observed in the financial services, wholesale and retail trade, other personal services, insurance and accommodation, food and beverage related activities.

Employment continued to increase amid recruitments across many companies in view of the festive season.

Meanwhile, Backlogs of Work continued to decline, yet at a slower rate in March 2025.

Expectations for business activities for the next three months continue to improve, but at a slower pace, amidst the uncertainties prevailed around import tariffs imposed by the US.

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