Thursday, 17 October 2019 06:03

Sri Lanka’s manufacturing and services expand at a slower rate

Sri Lanka’s manufacturing activities expanded at a slower rate in September 2019, compared to August 2019, Central Bank announced.

This slowdown in manufacturing was mainly driven by the slowdown in Production and New Orders during the month of September.

Slowdown in Production could be observed, especially in manufacturing of food & beverages and textiles & wearing apparel sectors, Central Bank said.

Although the New Orders and Production expanded at a slower rate, the Stock of Purchases was increased significantly with the anticipation of high demand in future especially in manufacturing of food & beverages sector.

An improvement in Employment was observed with the recruitment of new employees to fill the vacancies.

Services sector continued to expand in September 2019, yet at a slower pace compared to August 2019, mainly due to slower expansion in Business Activities.

Despite the slower expansion in Business Activities, New Businesses exhibited an accelerated pace of growth in September 2019, which could positively contribute towards the growth of Business Activities in future, official sources confirmed.

Accommodation, food & beverage services; financial services; and transportation sub sectors contributed towards the growth in New Businesses. Meanwhile, Expectations for Activity remained at same level in September compared to August 2019.

However, some respondents highlighted that their optimistic expectations on business activities were affected by the uncertainty in business environment due to current political climate of the country.

(LI)

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