Wednesday, 17 July 2019 06:07

Sri Lanka’s manufacturing and services sectors gain momentum

Sri Lanka’s manufacturing activities expanded at a higher rate while services sector recorded a recovery with the expansion in new businesses and business activity last month following the Easter terror set back, Central Bank revealed.


This expansion in manufacturing sector is mainly attributable to the significant recovery in employment, especially, in manufacturing of food & beverages and textiles & apparels sectors, from the lower employment availability experienced after the Easter Sunday attacks, CB said.
Expansion in new orders and production, particularly in manufacturing of food and beverages sector, also contributed to the improvement in June 2019.

Many respondents also highlighted that new orders and production recovered to a greater extent in June with the normalization of economic activities after the disruptions caused by the Easter Sunday attacks.

Central Bank noted that increasing rate of contraction Services sector recovered in June 2019 from its lowest level recorded in May 2019, which was mainly caused by the Easter Sunday attack.

The recovery in Services activities is mainly attributable to expansion in new businesses and business Activity, and expectations for activity.

New Business activities of wholesale and retail trade, and transportation sub sectors, which deteriorated after the Easter Sunday attack, expanded in June 2019.

Further, respondents in accommodation, food & beverage, and other personal services sub sectors, which largely depended on tourist arrivals in the country highlighted that business activities were gradually picking up.

. However, employment recorded a deterioration compared to previous month, yet at a slower pace, due to delays in filling vacant positions.

Prices Charged in the Services sector declined in June 2019 due to price discounts offered by hotels and price reductions offered by firms in transportation sub sector to face the competitiveness in the industry.

(LI)

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