Key insights
- Sri Lanka's service and manufacturing sectors contracted sharply in April, with PMI readings falling below 50. Declines in new orders, production, and employment signal weakening economic activity. While expectations for future activity in the services sector rose, the overall data suggests a slowdown in Sri Lanka's economy, potentially impacting global supply chains marginally.
Investing.com -- Sri Lanka’s services and manufacturing sectors both moved into contraction territory in April, according to data released by the Central Bank of Sri Lanka.
The services sector Purchasing Managers’ Index (PMI) fell to 46.7 in April from 59.4 in March. A reading below 50 indicates contraction in the sector.
The manufacturing sector PMI dropped to 42.6 in April, down from 66.7 in the previous month.
Within the services sector, new business declined to 48.9 from 57.6 in March, while employment fell to 44.4 from 54.2. The backlog of work stood at 48.8, compared to 48.1 in March. Expectations for activity rose to 65.9 from 57.1 in the previous month.
In manufacturing, new orders fell to 36.4 from 69.9 in March, and production dropped to 30.5 from 68.8. Employment in the manufacturing sector stood at 47.0, down from 55.9 in March. Stock of purchases declined to 44.0 from 59.9, while suppliers’ delivery time was recorded at 68.7, compared to 75.5 in the previous month.
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